Central Banks Continue Gold-Buying Spree to Diversify Currency Reserves

Central banks worldwide continue to build their gold reserves as part of a broader push to diversify away from currency-based holdings, with emerging economies including India, China, and Turkey among the most active buyers in recent years. Central banks added over 1,136 tonnes of gold worth an estimated $70 billion in a single recent year, according to World Gold Council data — the highest annual purchase volume on record at the time.

Analysts note that gold’s inverse relationship with the US dollar makes it an attractive diversification tool during periods of currency volatility, helping central banks bolster confidence in their reserves during uncertain economic periods.