Gold overtakes euro in central bank reserves for first time. Its reserves are at 1970s level
Photo: Depositphotos

By the end of 2024, gold had overtaken the euro for the first time in terms of volume in the reserves of global central banks. This was reported by the European Central Bank (ECB), writes Bloomberg.

The share of gold in global gold and foreign exchange reserves at market prices reached 20% by the end of 2024, ahead of the euro by 16%. The US dollar continued its steady decline, reaching 46% of global reserves.

This was a result of record high purchasing volumes and rapid price increases.

Read also
A World Without Values: How the New Geopolitics Replaces Ideas with Profit

The doubling of gold prices since the end of 2022 is partly due to central banks buying the metal.

Those states that are geopolitically close to China and Russia were particularly active in buying gold.

Sovereign institutions have been buying more than 1,000 tonnes of gold per year over the past three years, double the average pace of their purchases through 2022. Their holdings are now back to levels last seen in the late 1970s.

Gold prices typically move inversely with real yields. When rates rise, gold loses its appeal because it doesn't generate income.

But since 2022, the situation has changed – central banks have continued to buy gold, despite the global rise in interest rates.

  • On April 22, the price of gold reached an all-time high of $3,500.05.
  • Gold prices fell more than 1% on April 25 as China considered exempting certain U.S. imports from its tariffs, weakening the precious metal's appeal as a safe haven.
  • On May 27, CNBC wrote that wealthy people around the world are massively exporting gold to Singapore due to fears of crises.