The post Gold Overtakes Euro as the Second-Largest Central Bank Reserve appeared on BitcoinEthereumNews.com.

Gold surpasses Euro to become the second-largest reserve asset for global central banks, now comprising 16% of total reserve assets. The yellow metal outperforms Bitcoin as well.  As the Israel-Iran conflict escalates, gold prices have surged to $2,650, drawing investors seeking security, while Bitcoin’s value has fallen by over $4,000 since October 1. Amid the global macro uncertainty, central banks are hogging gold like never before, with the yellow metal overtaking Euro recently to become the world’s second-largest central bank reserve asset. As we know, central banks across the world have been on a solid gold-buying spree in the last two years, which has pushed their contribution to 16 percent of the total reserve assets. At the same time, the share of USD as a global reserve asset has dropped to 58 percent. The gold purchase has particularly surged among central banks in the East as they are willing to replace fiat currencies, including the USD, with gold amid economic uncertainties and rising geopolitical tensions. Gold Vs. USD Central banks around the world accumulated a net total of 483 tons of gold in the first half of this year, marking a 5 percent increase over the previous record of 460 tons set in H1 2023, with strong purchasing activity continuing into Q3. In 2023, central banks bought 1,037 tons of gold, falling just 45 tons short of the multi-decade record set in 2022. However, in the last 24 years, the share of USD as global reserves has dropped by 14 percent since the beginning of the century. Analyst Dave Kranzler cautions that the recent adjustments in monetary policy may exert additional downward pressure on the dollar. He added: The Fed has painted itself into a corner. It’s under enormous pressure from the market and Wall Street to cut interest rates.…

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Filed under: News - @ October 4, 2024 12:11 am