Logo

Central Banks Boost Gold Reserves Amid Rising Global Uncertainty in 2025

In 2025, central banks globally are bolstering gold holdings as a hedge against economic and geopolitical uncertainties. Nearly 95% of reserve managers anticipate growth in gold reserves, driven especially by emerging markets prioritizing gold for value preservation and portfolio diversity. Additionally, there's a notable shift towards domestic gold storage and scaling back US dollar reserves in favor of alternative currencies.

Central Banks Boost Gold Reserves Amid Rising Global Uncertainty in 2025

Central Banks Worldwide Ramp Up Gold Holdings in Response to Economic Uncertainty

In the face of ongoing economic and geopolitical turmoil, central banks across the globe are increasingly turning to gold as a safeguard for their reserves. A recent survey highlights that nearly 95% of reserve managers expect their gold holdings to grow over the coming year, marking the highest level of optimism since the survey began in 2019.

Why Gold Remains the Go-To Safe Haven

Gold continues to shine as a trusted asset for policymakers aiming to protect their portfolios from market volatility and inflationary pressures. Its resilience during periods of instability has reinforced its status as a strategic reserve asset. The survey reveals that reserve managers cite value preservation (80%), portfolio diversification (81%), and consistent performance amid challenges (85%) as the key reasons for their preference.

Emerging Markets Lead the Charge

Emerging markets and developing economies (EMDEs) are at the forefront of this trend, with 48% planning to increase their gold reserves within the next 12 months. This is in stark contrast to only 21% of advanced economies signaling similar intentions. Inflation concerns (84%) and geopolitical risks (81%) are driving factors for EMDEs, while central banks in advanced economies show relatively less emphasis on these issues.

Shift Towards Local Gold Storage and Diversified Currency Reserves

The survey also uncovers a shift in storage preferences, with 59% of central banks now holding their gold domestically, up from 41% the previous year. Additionally, a majority (73%) expect a decline in US dollar holdings within global reserves over the next five years, indicating a diversification towards alternative currencies such as the euro and renminbi alongside gold.

Expert Insights: A Strategic Pivot Amid Uncertainty

Industry experts point out the significance of this trend. Despite reaching new price highs in 2025, central banks are not deterred from boosting gold reserves. Rising interest rates, inflation fears, and geopolitical instability all serve as compelling reasons to favor gold as a risk mitigation tool in uncertain times.

Key Takeaways

  • 95% of reserve managers foresee increasing gold reserves in the next year.
  • 48% of emerging market central banks plan to raise gold holdings.
  • 59% of gold reserves are now stored domestically, reflecting growing confidence in local storage solutions.
  • 73% of survey participants anticipate reductions in US dollar reserves in favor of alternative currencies and gold.

With the global financial landscape poised for continued challenges, gold stands firm as a cornerstone of central bank reserve strategy — a timeless asset retaining its allure across shifting economic tides.

Rupee Volatility May Rise Post US Tariff Pause Expiry, Experts Warn
Rupee Volatility May Rise Post US Tariff Pause Expiry, Experts Warn

With the upcoming expiration of the U.S. President's 90-day tariff pause, the Indian rupee's recent stability may give way to greater volatility after the first half of fiscal 2026. MUFG predicts an appreciation to 83 per dollar with a potential trade deal, while Indian analysts expect fluctuations between 84-86 per dollar, emphasizing increased volatility starting September. RBI's actions will be crucial in managing these trends.

Japan’s Rising Bond Yields Raise Fears of Capital Outflows and Market Volatility
Japan’s Rising Bond Yields Raise Fears of Capital Outflows and Market Volatility

Yields on Japan’s long-term government bonds have reached near-record highs, fueling fears of capital repatriation by Japanese investors from the U.S. and potential disruptions in global financial markets. Experts warn that rising yields and a strengthening yen could unwind the yen carry trade, impact U.S. equities, and tighten global liquidity conditions. While some foresee a gradual adjustment, the evolving bond market dynamics warrant vigilant observation given their broad economic implications.

Australia's Consumer Inflation Steady in April with Rate Cuts Expected
Australia's Consumer Inflation Steady in April with Rate Cuts Expected

In April, Australia's consumer inflation rate remained stable at 2.4% year-over-year, with increased health and holiday expenses balanced by lower fuel costs. Core inflation measures stayed within the Reserve Bank's target range of 2-3%. The resilient labor market and slowing rent growth bolster expectations for potential interest rate cuts in July amid ongoing global economic uncertainties.

India Set to Drive Global Growth in 2025 and 2026, WEF Report Finds
India Set to Drive Global Growth in 2025 and 2026, WEF Report Finds

The World Economic Forum's Chief Economists Outlook identifies India as the primary engine of growth in 2025 and 2026, amid a mixed global economic climate. While North America faces weak prospects, South Asia remains robust, with India expected to grow over 6% annually. Global risks include trade shocks, rising public debt, and AI-driven job disruptions.

US Holds Over One-Third of Global Millionaires and Billionaires in 2024
US Holds Over One-Third of Global Millionaires and Billionaires in 2024

The United States holds more than a third of global millionaires and billionaires, boasting over 6 million liquid millionaires and 867 billionaires. Fueled by robust tech and AI industries, US millionaire populations grew 78% over the past decade. Key wealth centers include New York, the Bay Area, and emerging hubs in the Sunbelt, while immigration contributes to this wealth surge.

U.S. Credit Default Swaps Surge Amid Debt Ceiling Concerns, Panic Likely Overblown
U.S. Credit Default Swaps Surge Amid Debt Ceiling Concerns, Panic Likely Overblown

Investors are increasingly purchasing credit default swaps to insure against potential U.S. government debt default amid unresolved debt ceiling issues. CDS spreads on U.S. government debt have surged to near two-year highs, reflecting political risk rather than genuine default fear. Analysts predict this spike is temporary as Congress works toward a budget deal before July to raise the debt limit. The U.S. government is expected to avoid default as it has in prior crises, though fiscal challenges remain prominent following Moody's recent credit rating downgrade.

South Korea Cuts Interest Rates Amid Sluggish Economy and Trade Tensions
South Korea Cuts Interest Rates Amid Sluggish Economy and Trade Tensions

South Korea's central bank reduced its key interest rate to 2.5% and slashed the 2025 growth forecast to 0.8% to counter economic headwinds. Ongoing US tariff policies and political unrest following former President Yoon’s ousting have weakened domestic demand and trade prospects. Despite market gains, challenges remain as the country navigates global trade disputes and internal political shifts.

Fed Chair Powell Assures Trump of Non-Political Basis for Rate Decisions
Fed Chair Powell Assures Trump of Non-Political Basis for Rate Decisions

Federal Reserve Chair Jerome Powell met with President Donald Trump at the White House, emphasizing that monetary policy decisions will continue to rely on objective economic analysis rather than political influence. The central bank reaffirmed its commitment to address inflation, growth, and employment based on incoming data. Despite Trump's calls for lower rates, the Fed maintains a cautious stance amid tariff uncertainties and expects to hold rates steady for the near term.

Gold Surpasses Euro to Become World's Second-Largest Reserve Asset in 2024
Gold Surpasses Euro to Become World's Second-Largest Reserve Asset in 2024

In 2024, gold surpassed the euro to become the second-largest global reserve asset after the U.S. dollar, fueled by rising central bank demand and escalating geopolitical risks. While purchases may decelerate, gold remains a preferred safe haven for many economies, helping diversify reserves amid ongoing financial uncertainty.

Central Banks Boost Gold Reserves by Buying Directly from Local Mines
Central Banks Boost Gold Reserves by Buying Directly from Local Mines

In response to surging gold prices and geopolitical uncertainties, central banks worldwide are increasingly purchasing gold directly from domestic mines. This strategy saves costs, supports local mining communities, and allows central banks to grow reserves without tapping foreign currencies. However, challenges like refining capabilities and ethical sourcing remain critical. Industry experts highlight this trend as a strategic, win-win approach reshaping reserve management.

European Business Confidence in China Hits Record Low Amid Growth and Geopolitical Concerns
European Business Confidence in China Hits Record Low Amid Growth and Geopolitical Concerns

The EU Chamber of Commerce's 2025 survey reveals European businesses' outlook on China has deteriorated to historic lows, driven by economic slowdown and tightened regulations. Despite supply chain advantages, 73% report increased operating difficulties, with many planning reduced investments amid ongoing market access challenges and geopolitical tensions.

How Trump's Trade War Reshaped the Global Economy: Key Developments
How Trump's Trade War Reshaped the Global Economy: Key Developments

Since January 2017, President Donald Trump's series of tariffs on imports from China, Mexico, Canada, and the EU have unsettled global financial markets. Key actions include steel and aluminum tariffs, automobile import duties, targeted electronics tariff waivers, and fluctuating trade negotiations with China and the EU. Legal challenges and mutual tariff reductions further define this complex trade environment.

Liechtenstein Acts to Resolve Russian Wealth Freeze Amid US Sanctions Pressure
Liechtenstein Acts to Resolve Russian Wealth Freeze Amid US Sanctions Pressure

Under intensified US pressure, Liechtenstein is addressing the fallout from mass resignations of directors managing Russian-linked trusts after sanctions were imposed on prominent oligarchs. The government is reorganizing trust management to restore oversight of assets frozen by administrative limbo. This development reflects Liechtenstein’s effort to uphold regulatory standards while safeguarding its vital trust-based financial sector amid geopolitical scrutiny.

Global Investors Shift Focus: The Rise of the 'Anywhere But USA' Trade
Global Investors Shift Focus: The Rise of the 'Anywhere But USA' Trade

Concerns over U.S. economic policies, fiscal imbalances, and currency weakening are driving a shift in investor preference known as the 'Anywhere But USA' trade. Market experts highlight rising opportunities in Europe, emerging markets like India, and safe-haven assets in the UK. This global diversification reflects a broader recalibration toward balanced, multipolar growth amid increasing market volatility and geopolitical risks.

US-China Trade Talks Resume in London Following High-Level Phone Call
US-China Trade Talks Resume in London Following High-Level Phone Call

High-level trade negotiations between the US and China restarted in London following a crucial phone conversation between their leaders. These talks aim to reinforce a fragile ceasefire in a trade war that has disrupted global markets, with both sides addressing contentious issues such as tariffs, semiconductors, rare earth minerals, and visas amid declining trade figures.

World Bank Lowers India’s 2026 GDP Growth Forecast to 6.3%
World Bank Lowers India’s 2026 GDP Growth Forecast to 6.3%

The World Bank has reduced India’s GDP growth outlook for FY2025-26 from 6.7% to 6.3%, highlighting challenges like subdued exports and investment slowdown. Despite this, India remains the fastest-growing major economy. Global growth forecasts also dipped to 2.3%, marking a slowdown since 2008. The Bank recommends lowering tariffs and fiscal reforms to accelerate growth.

Kremlin Agrees with Trump: Russia’s G8 Removal Was a ‘Mistake’, Calls G7 ‘Useless’
Kremlin Agrees with Trump: Russia’s G8 Removal Was a ‘Mistake’, Calls G7 ‘Useless’

The Kremlin concurs with former President Trump's assertion that excluding Russia from the G8 in 2014 was a 'serious mistake,' but views the current G7 as ineffective. Trump criticized previous leaders for the decision, suggesting it could have prevented the Russia-Ukraine war. Recent talks between Trump and Putin also addressed regional tensions and prisoner exchanges.

Israel Warns Iran’s Khamenei Could Face Saddam’s Fate Amid Rising Tensions
Israel Warns Iran’s Khamenei Could Face Saddam’s Fate Amid Rising Tensions

Israel's Defense Minister has warned that Iran’s Supreme Leader Ayatollah Khamenei might suffer a fate similar to Saddam Hussein’s, as tensions between the two nations escalate into missile strikes and evacuations. Amid Trump's evacuation warning for Tehran, fears of a wider Middle East conflict grow, with Israel asserting control over Iranian airspace and signaling potential further escalations.