Gold Gains Role as Central Banks Buy 60t Monthly
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- Russia – $300 billion of its central bank reserves were frozen after the Ukraine invasion in 2022, turning dollar holdings into a geopolitical choice.
- Gold – central banks are expected to buy about 60 tonnes of gold per month in 2026, indicating steady, deliberate accumulation rather than panic.
- United States – still values its gold reserves at $42.22 per ounce; a market‑price revaluation above $5,000 could lift the recorded value from $11 billion to nearly $1.3 trillion.
- People’s Bank of China – continues to accumulate gold as part of long‑term reserve diversification, contrasting with weaker economies that are selling.
- Turkey – has sold nearly $8 billion worth of gold in recent months to obtain dollars for energy costs, illustrating the opposite side of the demand divide.
- Gold – technical analysis shows support at $4,200‑$4,300, with upside potential toward $5,000 and resistance near $5,300‑$5,400.
Why it matters: Central banks in stronger economies are bolstering reserves with gold, while weaker states like Turkey liquidate holdings to fund dollar‑denominated energy costs; a US gold revaluation could swell the Treasury’s balance sheet by over $1 trillion, reshaping the dollar’s dominance and altering global reserve allocations.
