Gold Price Trend | World Gold Council: Geopolitical Risks Heating Up, More Central Banks Will Buy Gold

SighingCashier · 2026-03-24T07:34:47+00:00

The World Gold Council's Fan Shaokai stated that as gold's role in countering de-dollarization and geopolitical risks increases, central banks are expected to return to the market. Following the recent sharp decline in gold prices exceeding $1,000, central bank demand may decrease due to price increases. New central banks or central banks that have been absent for long periods are gradually entering the market, and this trend is expected to continue through 2026. Although the volume of gold purchases may decrease, it will still remain above pre-2022 levels.

SighingCashier

2026-03-24 07:34:47

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The World Gold Council (WGC) Asia-Pacific Director and Head of the Central Bank Department, Shaokai Fan, stated that as gold’s role in hedging against de-dollarization and geopolitical risks becomes increasingly prominent, central banks that have long been absent from the market are expected to resume purchasing this precious metal this year.

Gold prices reached an all-time high of nearly $5,600 per ounce at the end of January but plummeted over $1,000 this month, with the latest trading price around $4,340.

Fan told Reuters that, based on historical trends, this decline is partly due to margin calls and related sell-offs. During the gold sell-off in October last year, many central banks bought large amounts of gold, but it is still too early to determine whether this month’s sharp drop has triggered a similar phenomenon.

He added that central banks’ demand for gold might decrease because rising prices not only suppress new purchases but also increase the proportion of existing gold reserves within total reserves.

He noted that in recent months, central banks from Guatemala, Indonesia, and Malaysia have all bought gold—some re-entering the market after long stagnation, others making their first purchases.

He pointed out that over the past few months, a phenomenon has been observed where new central banks or those that have been inactive or absent in the gold market for a long time are entering the market. He believes this trend could continue until 2026. Some central banks are also purchasing gold from small domestic producers to support local industries and prevent these gold flows from reaching bad actors.

In January this year, the WGC stated that record-breaking gold prices are expected to slow central bank gold purchases from 863 tons in 2025 to 850 tons this year, though still high compared to pre-2022 levels. According to WGC data, last year, central bank gold purchases accounted for about 17% of global demand.

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