Central Banks Will Buy Gold

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Central Banks Will Buy Gold

Central Banks Will Buy More Gold

If there's one thing the central banks can't get enough of, is Gold. A recent survey from OMFIF shows that around 33% of the central banks around the globe will buy gold within 1 to 2 years.

That's why Commerzbank has made a forecast that all of the big central banks are now thinking of buying more gold. Meanwhile, the US Dollar continues to lose its global favor due to a number of reasons.

40% Central Banks Will Buy Gold

During the next 10 years, around 40% of the central banks want to buy Gold. On the other hand, the appeal of the US Dollar is slowly fading away.

Within a span of one year, the US Dollar has slipped from 1st spot to #7. Also, around 70% of the central banks have expressed concerns that the US political environment will prevent them from buying the US Dollar.

This lack of confidence has led to more inflows in the Gold, EURO, and even the Chinese currency! However, experts believe that the US Dollar will still be a major reserve currency in the next 10 years.

In the next 10 years, the share of the US Dollar will be 52% while the Euro will be 22%. But this also highlights that things will continue to get tough for the US Dollar.

Just a few weeks ago, data from the ECB showed that the Euro has lost its position to Gold and is now in the 3rd spot. In a sense, this also shows that people are slowly losing their interest in fiat currencies.

Data from the World Gold Council also reveals that many central banks are expected to buy gold during a period of 12 months.

direct result of more buying of Gold from the central banks means higher Gold prices in the coming years. This will also cement the uptrend in the Gold and allow it to reach new highs.

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