Baku. 1 October. REPORT.AZ/ The demand of the world central banks for and investments in gold are increasing.
Citing the data of the World Gold Council and International Monetary Fund, Report’s analytical group says that gold purchase by the central banks has reached the highest level since 2015.
Consequently, as of July 1, 2018, the gold reserves of the central banks has reached 33,763.6 tons.
The countries which increased their gold reserves the most are Russia, Turkey and Kazakhstan. These countries have increased their gold reserves by 383.3 tons, 125.8 tons and 68.4 tons respectively since early 2018.
However, the gold price is declining due to the increase in interest rates by US Federal Reserves. Gold price declined to $1,190-1,195 an ounce from $1,275 an ounce in the reporting period of the last year. If Fed’s pressure continue, the gold price may fall below $1,150 an ounce. This is may be a opportunity for the central banks.
Report’s analytical group believes that as the participants of the financial markets, including central banks, are concerned about the US President Donald Trump’s actions, as well as geopolitical risks in the Eastern hemisphere, they take measures to prevent any possible problem in the future. One of these measures is to make investments in gold. If the process continues, the decline in gold price may halt and its price may rise to $1,500 an ounce.