A World Gold Council headline \u201cCentral bank gold buying picks up in May\u201d<\/a>.<\/p>\n Global central banks bought a net 20t in\u00a0<\/strong>May<\/strong><\/a>, based on reported data, close to but still below the 12-month average of 27t. Fresh tensions in the Middle East may have reinforced the strategic appeal of gold for central banks looking to safeguard reserves against geopolitical shocks.<\/p>\n<\/blockquote>\n That being said, the increase in the share of total reserves in the form of gold in recent years (documented in this post<\/a>) has been driven more by gold price increases rather than physical holdings.<\/p>\n Figure 1:<\/strong> Value of central bank gold reserves at market prices, in millions of USD (blue, left log scale), and quantity in tonnes (tan, right log scale). NBER defined peak-to-trough recession dates shaded gray. Source: IFS via World Gold Council, World Gold Council, and NBER.<\/em><\/p>\n It\u2019ll be of interest to see how gold holdings \u2014 vs. dollar holdings \u2014 change in 2025Q1.<\/p>\n While we don\u2019t have US dollar reserves, we have TIC estimates foreign holdings of Treasuries by foreigners (official and<\/em> private), and those do not seem to have fallen as of April<\/a>. So, too early to say the dollar is on the way out.<\/p>\n \u00a0<\/p>\n<\/p><\/div>\n <\/p>\n\n
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