Recently, there has been a "gold rush" among central banks, which are actively increasing their gold reserves due to waning confidence in national currencies amid geopolitical instability and trade conflicts.
In October this year, gold prices reached a historic high of around $4,380 per ounce, growing over 60% in 10 months. However, on October 21, there was a sharp drop of 6.5% within a day. These corrections triggered a wave of sales among investors and prompted central banks to rethink their reserve strategies.
Countries most actively increasing gold holdings include Poland, China, the Philippines, India, and Turkey. Drivers for this demand include threats of sanctions, wars, trade disputes, and the experience of frozen reserves in some countries. The Philippines, for example, now holds 15% of its reserves in gold; similar proportions are seen in several other countries.
Following this sharp rise and correction, central banks debate whether to sell some gold to lock in profits or keep it as a hedge against future crises. Global trends show a shift from passive gold holding to active reserve management.
Gold has now become the world's second-largest reserve asset after the dollar, surpassing the euro. Its growing role in reserve policy reflects a changing global financial architecture where central banks increasingly react to market conditions and seek a balance between stability and the profitability of their reserves.
