Global Central Banks Have Been Buying Record Amounts of Gold to De-dollarize

Central banks globally are buying gold in record amounts to diversify from the dollar. State Street Global Advisors reports that these purchases reached 387 metric tons in the first half of 2023 alone, after an unprecedented 1,083 tons the prior year. This shift is partly attributed to the de-dollarization movement, led by nations like China and Russia, aiming to lessen the dollar’s dominance in global trade. This move is also a response to the U.S. using the dollar’s supremacy to enforce economic sanctions. The trend is anticipated to persist due to ongoing economic and geopolitical risks.