Latest news with #ShaokaiFan
Time of India
17-06-2025
- Business
- Time of India
Gold set to gain share in forex reserves as dollar outlook dims: WGC
Gold reserves: A World Gold Council survey shows nearly half of central banks plan to boost gold reserves amid geopolitical risks. Gold may outpace the US dollar, with growing preference for safer, non-dollar assets including yuan and euro. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Gold could eat into the share of the US dollar in central bank forex holdings worldwide over the next five years, an annual World Gold Council (WGC) survey showed, underscoring a broad-based tilt toward safe-haven assets in a trading environment rocked by geopolitics and unpredictable trade tariffs. The yuan and the euro, too, might see share gains that reflect the shifting trade currents.'Nearly half of the central bank respondents intend to increase their own gold holdings in the coming year,' said Shaokai Fan, Global Head of Central Banks & Head of Asia-Pacific (ex-China). 'This is remarkable, especially considering how many record-high prices we've hit so far in 2025.'Gold prices have continued to surge through this year, in part aided by institutional purchases, after a record 2024 surge.'Notably, this reflects the current global financial and geopolitical environments,' Shaokai Fan said. 'Gold remains a strategic asset as the world faces uncertainty and tumult. Central banks are concerned about interest rates, inflation, and instability – all reasons to turn to gold to mitigate risk.'Central banks have bulked up gold holdings in recent years amid geopolitical and economic uncertainty. WCG said that central banks accumulated over 1,000 tonne of gold in each of the last three years, up significantly from the average 400-500 tonne over the preceding to the survey, which collected data from 73 of the world's central banks, were less sanguine about the prospects of the US dollar, which still is the world's reserve currency and the monetary unit in which goods are priced survey also revealed that 95% of respondents believe that global central bank gold reserves will increase over the next 12 months. This is a record high since it was first tracked in the 2019 survey and represents a 17% increase from the 2024 findings, WGC the American currency dollar maintains its position as the dominant global reserve currency, data from the International Monetary Fund's Currency Composition of Official Foreign Exchange Reserves (COFER) shows that the dollar's share has been on a gradual decline.'The majority of respondents (73%) see moderate or significantly lower US dollar holdings within global reserves over the next five years. Respondents also believe that the share of other currencies, such as the euro and renminbi, as well as gold, will increase over the same period,' the WCG survey said. Bank of Baroda May report, based on the WGC data, had shown that the gold holding by central banks climbed 4.1% annually between 2009 and top 10 holders are the US, Germany, Italy, France, Switzerland, Japan, Netherlands, China, Russia, and India.
Time of India
17-06-2025
- Business
- Time of India
Central banks set to boost gold holdings amid economic and geopolitical uncertainty: World Gold Council
Central banks anticipate an increase in official sector gold holdings amid a backdrop of geopolitical and economic uncertainty, according to a report released by the World Gold Council today. More than nine in ten (95%) reserve managers indicated that they expect central banks to continue increasing their gold holdings in the next 12 months, according to the new 2025 data released by WGC. This is a record high since it was first tracked in the 2019 survey and represents a 17% increase from the 2024 findings. The 2025 Central Banks Gold Reserves (CBGR) survey, which collected data from a record 73 of the world's central banks, also finds that nearly 43% of central banks plan to add to their gold reserves within the next year. Reserve managers' favourable view of gold persists even in the face of record-high gold prices and 15 successive years of central bank gold buying . Gold continues to be used as a safe-haven asset to help mitigate risks as ongoing economic and geopolitical uncertainty continues to weigh on reserve managers. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like After Losing Weight Kevin James Looks Like A Model 33 Bridges Undo The top three current motivations for holding the asset have shifted to its long-term store of value (80%), its role as an effective portfolio diversifier (81%), and its performance in times of crisis (85%). Central banks in emerging markets and developing economies (EMDE) have once again maintained their positive outlook for gold's future share in reserve portfolios. Notably, 28 out of 58 (48%) EMDE respondents thought that their gold reserves would increase in the next 12 months, compared to 3 out of 14 (21%) of advanced economy respondents, more than last year. Live Events Although interest rate levels remained a key component of both groups' motivators for holding gold, inflation (84%) and the geopolitical situation (81%) were top of mind for EMDEs, while 67% and 60% of advanced economy respondents felt the same. Notably, more central banks are increasingly storing gold domestically: 59% said they have gold in domestic storage, up from 41% in 2024. Additionally, most respondents (73%) see moderately or significantly lower US dollar holdings within global reserves over the next five years. However, respondents also believe that other currencies, such as the euro and renminbi, as well as gold, will increase their share over the same period. Shaokai Fan, Global Head of Central Banks & Head of Asia-Pacific (ex-China), commented: 'After eight years of conducting this survey, we have reached an important milestone: nearly half of the central bank respondents intend to increase their gold holdings in the coming year. This is remarkable, especially considering how many record-high prices we've hit so far in 2025. Notably, this reflects the current global financial and geopolitical environments. Gold remains a strategic asset as the world faces uncertainty and tumult. Central banks are concerned about interest rates, inflation, and instability – all reasons to turn to gold to mitigate risk.'
Mint
17-06-2025
- Business
- Mint
More Central Banks Than Ever Plan to Build Up Their Gold Hoards
(Bloomberg) -- A record share of the world's central banks plans to accumulate more gold over the next 12 months, drawn by bullion's performance during times of crisis and protection against inflation. In a survey of 72 monetary authorities, 43% said they expected their gold reserves to increase, up from 29% a year earlier and the highest figure in eight years of data collected by the World Gold Council and YouGov. None anticipated a decline. Central banks have been one of the most important drivers of a long-running gold rally that has seen prices double since late-2022. The pace of buying doubled after the invasion of Ukraine, when the freezing of much of Russia's foreign currency holdings highlighted the appeal of bullion as a reserve asset. 'There are some pretty big moves in some of these numbers,' said Shaokai Fan, global head of central banks for the WGC, a trade body representing gold miners. 'Western countries have stopped selling and emerging market countries have started buying, they're catching up and building more gold reserves.' The overwhelming majority of respondents said they thought central bank gold reserves would increase globally over the next 12 months. The most commonly cited relevant factors for holding gold were its performance during crises, its role as a portfolio diversifier and a store of value. Central banks have been mopping up more than 1,000 tons for each of the last three years, and are set to continue that pace of buying this year, according to consultancy Metals Focus. They have been net buyers for the last 15 years, reversing net sales that drove a decade-long bear market in the 1990s. The buying helped gold overtake the euro as the second-largest asset in the reserves of the world's central banks late last year. US dollar assets, mostly Treasuries, extended a steady decline to reach 46% of global reserves. Among the factors that threaten to accelerate the decline of the US dollar's share of global reserves are the country's yawning fiscal deficits, confiscation risk and speculation that foreign creditors may be treated less favorably. All that stands to benefit gold. More than half of the central banks from emerging economies in the survey said that gold's lack of political risk was a relevant factor behind their decision to hold gold, while 78% cited its lack of default risk. But the US dollar is not in danger of losing its status as the dominant reserve asset anytime soon. 'Central banks are looking at the dollar and the Treasury market with a little bit more care than they would earlier on,' Fan said. 'But I don't think that this is a sort of mad rush for the doors.' More stories like this are available on
India Gazette
17-06-2025
- Business
- India Gazette
Central banks will continue to increase gold reserves amid geopolitical, economic uncertainty: WGC survey
New Delhi [India], June 17 (ANI): More than nine in ten (95 per cent) reserve managers indicated that they expect central banks to continue increasing their gold holdings in the next 12 months, according to new 2025 data released by the World Gold Council on Tuesday. This report comes on the backdrop of geopolitical and economic uncertainty. This is a record high since it was first tracked in the 2019 survey and represents a 17 per cent increase from the 2024 findings. The 2025 Central Banks Gold Reserves (CBGR) survey, which collected data from a record 73 of the world's central banks, also finds that nearly 43 per cent of central banks plan to add to their own gold reserves within the next year. Reserve managers' favourable view of gold persists even in the face of record-high gold prices and 15 successive years of central bank gold buying. Gold continues to be used as a safe-haven asset to help mitigate risks as ongoing economic and geopolitical uncertainty continues to weigh on reserve managers. The top three current motivations for holding the asset have shifted to its long-term store of value (80 per cent), its role as an effective portfolio diversifier (81 per cent), and its performance in times of crisis (85 per cent). Central banks in emerging markets and developing economies (EMDE) have once again maintained their positive outlook for gold's future share in reserve portfolios. Notably, 28 out of 58 (48 per cent) EMDE respondents thought that their own gold reserves would increase in the next 12 months, compared to 3 out of 14 (21 per cent) of advanced economy respondents, more than last year. Although interest rate levels remained a key component of both groups' motivators for holding gold, inflation (84 per cent) and the geopolitical situation (81 per cent) were top of mind for EMDEs, while 67 per cent and 60 per cent of advanced economy respondents felt the same. Notably, more central banks are increasingly storing gold domestically: 59 per cent of the respondents said they have gold in domestic storage, up from 41 per cent in 2024. Additionally, most respondents (73 per cent) see moderately or significantly lower US dollar holdings within global reserves over the next five years. However, respondents also believe that other currencies, such as the euro and renminbi, as well as gold, will increase their share over the same period. Shaokai Fan, Global Head of Central Banks & Head of Asia-Pacific (ex-China), commented: 'After eight years of conducting this survey, we have reached an important milestone: nearly half of the central bank respondents intend to increase their own gold holdings in the coming year.' 'This is remarkable, especially considering how many record-high prices we've hit so far in 2025. Notably, this reflects the current global financial and geopolitical environments. Gold remains a strategic asset as the world faces uncertainty and tumult. Central banks are concerned about interest rates, inflation, and instability - all reasons to turn to gold to mitigate risk,' added Shaokai Fan. The research was conducted by the World Gold Council in partnership with YouGov between 25 February and 20 May 2025, with 73 responses from central banks around the world. This is an increase in sample size from the previous year, which had 70 responses. (ANI)
Yahoo
17-06-2025
- Business
- Yahoo
More Central Banks Than Ever Plan to Build Up Their Gold Hoards
(Bloomberg) -- A record share of the world's central banks plans to accumulate more gold over the next 12 months, drawn by bullion's performance during times of crisis and protection against inflation. As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space Security Concerns Hit Some of the World's 'Most Livable Cities' As American Architects Gather in Boston, Retrofits Are All the Rage How E-Scooters Conquered (Most of) Europe In a survey of 72 monetary authorities, 43% said they expected their gold reserves to increase, up from 29% a year earlier and the highest figure in eight years of data collected by the World Gold Council and YouGov. None anticipated a decline. Central banks have been one of the most important drivers of a long-running gold rally that has seen prices double since late-2022. The pace of buying doubled after the invasion of Ukraine, when the freezing of much of Russia's foreign currency holdings highlighted the appeal of bullion as a reserve asset. 'There are some pretty big moves in some of these numbers,' said Shaokai Fan, global head of central banks for the WGC, a trade body representing gold miners. 'Western countries have stopped selling and emerging market countries have started buying, they're catching up and building more gold reserves.' The overwhelming majority of respondents said they thought central bank gold reserves would increase globally over the next 12 months. The most commonly cited relevant factors for holding gold were its performance during crises, its role as a portfolio diversifier and a store of value. Central banks have been mopping up more than 1,000 tons for each of the last three years, and are set to continue that pace of buying this year, according to consultancy Metals Focus. They have been net buyers for the last 15 years, reversing net sales that drove a decade-long bear market in the 1990s. The buying helped gold overtake the euro as the second-largest asset in the reserves of the world's central banks late last year. US dollar assets, mostly Treasuries, extended a steady decline to reach 46% of global reserves. Among the factors that threaten to accelerate the decline of the US dollar's share of global reserves are the country's yawning fiscal deficits, confiscation risk and speculation that foreign creditors may be treated less favorably. All that stands to benefit gold. More than half of the central banks from emerging economies in the survey said that gold's lack of political risk was a relevant factor behind their decision to hold gold, while 78% cited its lack of default risk. But the US dollar is not in danger of losing its status as the dominant reserve asset anytime soon. 'Central banks are looking at the dollar and the Treasury market with a little bit more care than they would earlier on,' Fan said. 'But I don't think that this is a sort of mad rush for the doors.' Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros American Mid: Hampton Inn's Good-Enough Formula for World Domination How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants The Spying Scandal Rocking the World of HR Software US Allies and Adversaries Are Dodging Trump's Tariff Threats ©2025 Bloomberg L.P.
