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Incorrect.
Most of the "increase" in CB holdings is accounting effect because of price price going up. Cbs have been buying but not that much
Wrong.
'Central banks, which were net sellers of gold for many years, flipped to net buyers in 2010 when they reassessed their risks following the financial crisis sparked by the American mortgage meltdown. Central banks picked up the pace of their gold purchases in 2022.
That is when the West sanctioned Russia over its invasion of Ukraine. Central banks in countries that have strained relationships with the West, including China, have been shifting away from dollar-based assets into gold, which is beyond the reach of foreigners.
Others, including the National Bank of Poland, an aggressive gold buyer that on Tuesday approved another big purchase, seek to ensure the stability of their own currencies by adding assets without the same risks as sovereign debt.
“Central banks are buying gold not just purely for its price performance, but the role that it can play in foreign reserves,” said Juan Carlos Artigas, head of research for the World Gold Council. “Gold is very useful to hedge or diversify the reserves.”'
https://www.wsj.com/finance/commodities-futures/gold-prices-5000-ounce-2026-67361c87
Most of the purchases over recent years have been the central banks of China, Russia, Gulf States, Turkey etc increasing their gold holdings and reducing USTs.
Gold holdings held by central banks are now higher than at any time since the 1970s and purchases are still increasing significantly in dollar denominated terms even if tonnes are reduced due to significant increase in price/tonne..