Global Gold Reserve Landscape Could Change Dramatically
As gold prices continue to rise, the global landscape of foreign exchange reserves is undergoing a significant transformation. New research from Deutsche Bank suggests that when gold prices reach $5790 per ounce, central banks’ gold reserves will surpass dollar reserves in value — a historic shift in global reserve assets.
Central Banks Keep Buying Gold
According to the World Gold Council, global central banks currently hold around $13 trillion in foreign exchange reserves, with official gold reserves totaling 36,000 metric tons. At current prices, the value of this gold is approximately $6.37 trillion, indicating its growing importance in national reserves.
Uncertain Outlook for Rates and Inflation
While the Federal Reserve remains committed to stabilizing interest rates, recent policy shifts in the U.S. have created uncertainty around global inflation and monetary conditions. This environment has made gold an increasingly attractive asset for central banks seeking to diversify their holdings.
Gold May Become the Core of Global Reserves
Deutsche Bank’s analysis highlights the rising role of gold as prices climb. Once gold hits $5790 per ounce, the value of gold reserves will exceed that of dollar holdings, signaling a new era in global monetary reserves — one where gold may take center stage.