Import/export of gold: what influence on the price?

Key points

• Central banks play a major role in purchasing gold to diversify their reserves.

• Geopolitical tensions and economic sanctions affect demand for gold.

• Low interest rates make gold more attractive as an investment.

• Gold is considered a safe haven in times of economic uncertainty.

• Gold market trends are influenced by global supply and demand.

The Impact of Central Banks on the Price of Gold

Import/export of gold: what influence on the price?

Role of Central Banks

Central banks play a crucial role in the gold market. They hold huge gold reserves, which directly influences its price. When they buy or sell gold, it can move the market. For example, if a central bank decides to buy a lot of gold, it can drive up prices.

Diversification of Reserves

Diversification of reserves is a key strategy. Central banks are seeking to reduce their dependence on the US dollar. By purchasing gold, they diversify their assets, which can stabilize their economy. Here are some reasons why they do this:

• Financial security : Gold is considered a safe haven asset.

• Protection against inflation : In times of inflation, gold retains its value.

• Risk reduction : Diversification helps minimize potential losses.

De-dollarization and Gold Buying

De-dollarization is a growing phenomenon. Many countries are seeking to reduce their dependence on the dollar, especially after economic sanctions. This has led to an increase in gold purchases by central banks. This movement is particularly visible in countries like Russia and China.