Central bank demand supports gold prices — Heraeus

Heraeus analysts have published a new report on precious metals, highlighting that central bank demand is supporting gold, which has not seen significant gains since hitting record highs in April. Meanwhile, investors are forecasting a near-term rise in silver prices.

The report notes that over the past three years, central banks have added over 1,000 tonnes of gold to their reserves, a figure that far exceeds the long-term average.

Sentiment toward the yellow metal remains optimistic, the report emphasizes. 95% of surveyed central banks expect global gold reserves to grow, while 43% plan to boost their own holdings.

On silver, the Heraeus study shows its investment appeal persists. Over 50% of net inflows into silver-backed exchange-traded funds (ETFs) have been recorded since the start of the year. Against this backdrop, silver reserves have hit a record high since August 2022, surpassing 24,000 tonnes.