Two roles
Central banks influence gold in two ways: they set interest-rate policy, and many hold gold as reserves. Since 2010 central banks as a group have been net buyers, and purchases were especially large from 2022 onward, according to World Gold Council data.
Key takeaways
- Policy moves rates; reserve purchases add demand.
- Central banks have been net buyers since 2010.
Knowledge check
Central banks affect gold through…
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