According to Odaily, central banks' significant gold purchases have been a key factor in supporting gold prices. However, the recent surge in the U.S. dollar might curb this demand. Data from the World Gold Council reveals that central banks have acquired 694 tons of gold this year, aiming to diversify their assets and reduce reliance on the dollar.
George Saravelos, Head of Foreign Exchange Research at Deutsche Bank, suggests that policies under former President Trump could weaken emerging market currencies. He notes that many central banks now need to utilize their dollar reserves to protect their foreign exchange from capital outflows and prevent excessive currency depreciation.
