Central Banks Shift from Dollar to Gold Amid Market Uncertainty
Gold prices surged to a record $4,300 per troy ounce before experiencing their steepest one-day drop in over a decade on October 21, according to Cryptopolitan. Despite the correction, Gold remains one of 2025’s top-performing assets, with a year-to-date gain of roughly 50%.
Central banks are accelerating their gold acquisitions as a hedge against market volatility. Bloomberg data reveals that gold-backed exchange-traded fund holdings reached their highest levels in more than three years in October. This trend reflects a broader MOVE away from the US dollar, particularly among nations outside the Bretton Woods system.
The World Gold Council reports that global central banks purchased over 1,000 tons of bullion for the third consecutive year in 2024, now holding approximately one-fifth of all mined gold. The People’s Bank of China has been a consistent buyer, adding to its reserves for 11 straight months through September.
