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