World Gold Council: More central banks will increase gold holdings driven by geopolitical risks

Odaily Planet Daily reports that Shaokai Fan, the head of the World Gold Council’s Central Bank Department, stated on Tuesday that gold is expected to play a role in hedging against de-dollarization and geopolitical risks. This will likely motivate central banks that have previously been absent from the market to buy this precious metal this year. He said that in recent months, central banks from countries such as Guatemala, Indonesia, and Malaysia have started purchasing gold. These central banks may be returning to the market after long-term suspensions or making their first gold purchases. “In the past few months, some new central banks, or those that have been inactive or absent from the gold market for a long time, are entering the gold market. I believe this trend could continue into 2026,” he added. Some central banks are also buying gold from small domestic producers to support local industries and prevent these gold flows from reaching “informal participants.” He further noted that during a gold sell-off last October, many countries’ central banks took the opportunity to increase their holdings, but it is still too early to determine whether similar activity will occur during this month’s decline. (Jin10)