Translation. Region: Russian Federation –
Source: Mainfin Bank –
An important disclaimer is at the bottom of this article.
Why is the demand for gold growing rapidly in the world?
The increased desire of central banks to shift from dollar-denominated reserves to gold and foreign exchange reserves is a result of the unstable international situation. Factors driving the increased demand for gold include:
the presence of geopolitical uncertainty; economic instability in the world; the desire of banks to diversify assets; the aggressive trade policy of the US President; the increase in the number of military conflicts.
Gold remains the safest and most reliable means of preserving capital during periods of instability. As a result, amid high demand, prices for the precious metal are rising, and central banks are increasing purchases despite the increased cost.
Which countries contribute the most to their gold and foreign exchange reserves?
In September, gold purchases were 79% higher than the previous month – central banks purchased 39 tons of the metal, 27 tons more than the annual average. Among the largest buyers were:
Brazil, which purchased 15 tons for the first time since the beginning of the year; Kazakhstan, which purchased 8 tons; Guatemala – 6 tons; Russia purchased 3 tons of gold in September.
"Banks will continue to increase their gold purchases, which will lead to an even greater increase in prices – precious metals are in demand worldwide amid economic uncertainty," the expert noted.
Even greater demand for gold is expected if the US and China fail to reach a trade agreement: the imposition of tariffs and import bans on certain goods will lead market participants to seek to protect their assets. Factors driving up gold prices include the crises in Japan and France, as well as the US shutdown. This year alone, gold prices have increased by more than 50%, and are expected to rise by 27% in 2024.
09:00 11.11.2025
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