FT has learned about the reduction of dollar reserves by central banks

Central banks will continue to buy gold in 2025 and will reduce their dollar reserves within five years, according to the results of a survey by the World Gold Council (WGC). This was reported on June 17 by the Financial Times newspaper.

"Geopolitical concerns, the risk of sanctions and concerns about the status of the US dollar have prompted global central banks to make record purchases of bullion," the article explains.

The article highlights that gold prices have increased by 30% since January and "have doubled in the last two years as global uncertainty and market volatility have stimulated investor demand for bullion."

It is indicated that 95% of respondents who took part in the survey expect that over the next 12 months the gold reserves of the world's central banks will increase, which is the highest figure since 2018.

At the same time, three quarters of respondents expect that over the next five years the dollar's share in central banks' reserves will decrease, the article notes.

In a WGC survey, central banks stated that the main reasons for holding bullion are the effectiveness of gold in "times of crisis," the absence of default risk, and its role as a hedge against inflation.

Gold, considered a hedge against global uncertainty and inflation, reached its 28th all-time high in 2025, rising for the first time on April 22 to $3,500 per ounce. Nevertheless, on June 16, amid decreasing concern in the market, the price of gold dropped to $ 3,415 per ounce.

Eternal value: the world's central banks are hastily buying gold before imposing duties

Nevertheless, the return of currency pegging to precious metals is not yet expected.

The Guardian newspaper reported on June 16 that the price of gold is declining worldwide, indicating a decrease in market concern. According to the publication, the price of gold as of June 16 decreased by 0.5%, to $ 3,415 per ounce. Now it remains below its historical maximum of $3,500.