Is the central bank gold rush over?
Has gold become too expensive to offer value as a diversification asset amid geopolitical turbulence?
Central banks hoarded gold at a breakneck pace over the past three years. World Gold Council data shows central banks bought 1,082 tonnes of bullion in 2022, 1,037 tonnes in 2023 and 1,044 in 2024. A troy ounce of the metal now costs more than $3,000, having increased over 40% since January 2024.
The adage that gold is a good hedge against volatility has demonstrated some value in recent years, as can be seen by contrasting a measurement of geopolitical instability and the price of bullion (see
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