According to a report from JPMorgan, central banks are increasingly adding gold to their reserves while reducing dollars, which may impact economic stability.
Growing Interest from Central Banks in Gold
JPMorgan Chase reports that central banks such as China, Russia, and Türkiye are becoming the largest buyers of gold. This trend indicates a growing appetite for gold as an alternative asset.
Change in Dollar Share within Reserves
The analysis shows that the share of dollar reserves has fallen to a two-decade low. A forecast indicates that 900 tonnes of gold will be bought by 2025, driven by geopolitical and economic uncertainties.
Impact on Global Economic Trends
Increased demand for gold may drive its price towards $4,000/oz by mid-2026. The growing gold reserves may also alter the balance of global economic power.
The increased allocation of gold in central bank reserves may indicate broader economic changes and potential diversification measures amidst policy uncertainties.
