Central banks buying more gold ≠ ditching the dollar

Whilst buying gold may reduce central banks’ overall exposure to the dollar, we don’t think that the surge in central bank gold demand reflects a severe loss of confidence in the greenback. Instead, the perception of gold itself as a safe haven is probably the key driver of central bank demand. In any case, we think official sector purchases will support gold prices to an above-consensus $3,300 per ounce by end-2025.

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