ANZ Bank: Gold demand from central banks around the world may increase this year.

Soni Kumari and Daniel Hynes from the research department of ANZ Bank stated in a report that central banks around the world may increase their demand for gold this year. Despite the pressure caused by the rise in gold prices and increased volatility in January, central banks with relatively low levels of gold holdings may show new demand. They added that a key theme this year may be the emergence of new official buyers beyond traditional buyers, and pointed out that the Malaysian central bank recently made its first net gold purchase since 2018. A downside risk is the selling off by central banks in developed markets, but these strategists believe that this is unlikely. "Given the geopolitical and fiscal challenges facing many advanced economies, gold continues to play a crucial role in reserve investment portfolios." Spot gold fell by 0.2% to $5,168.03 per ounce.