Central banks continue to back gold

The central banks, 73 in number, were once again asked by the World Gold Council about their gold plans.

43% of central banks intend to increase their gold reserves in the current year. None of the banks surveyed intend to reduce them. Around three quarters of those surveyed also expect the US dollar reserves in national reserves to fall over the next few years. Low key interest rates, the buying propensity of central banks and crises such as the current Middle East conflict as well as the still uncertain customs policy of the USA speak in favor of gold. Of course, there are also those who see the price of gold falling by the end of 2025. According to the experts at Citi Research, unforeseen solutions to geopolitical crises could cause the price of gold to fall. That may well be the case, but it doesn’t look that way globally, the Russia-Ukraine war continues and whether the Israel-Iran conflict can be resolved so quickly seems rather uncertain.

In addition, as a look at the USA shows, growth is slowing, and inflation is rising. The Fed expects inflation to continue to rise and is therefore anticipating possible stagflation but is still planning to cut interest rates. Falling interest rates are good for the gold price. However, it is uncertain exactly what will happen next, given that Fed Chairman Powell’s term of office ends in 2026. Even if gold investments are not the only answer to all uncertainties, interest in gold seems to be higher than ever before. Central banks are buying gold bars, but not gold shares. As a result, this asset class appears undervalued and offers investors opportunities. An investment in gold royalty companies, for example, which have a broad diversification, could be worthwhile.

OR Royalties – https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/ -, active in North America, has license agreements and interests in the gold and copper sector, including the Malartic property, one of Canada’s largest mines.

Gold Royalty – https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ – looks after gold properties in North and South America.

Current company information and press releases from OR Royalties (- https://www.resource-capital.ch/en/companies/or-royalties-inc/ -) and Gold Royalty (- https://www.resource-capital.ch/en/companies/gold-royalty-corp/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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