Central Banks Boost Gold Reserves in March Led by China, Poland, and Uzbekistan

The World Gold Council reported that global central banks significantly increased their gold reserves in March, marking a historical shift in preference for gold over debt instruments since 2022. Leading the surge were Poland, Uzbekistan, and China, as foreign central banks began reallocating US Treasuries and shifting custody from the NY Fed to Euroclear and Clearstream to mitigate risk. While total foreign official holdings of US Treasuries remain near all-time highs, the pace of accumulation has slowed in favor of precious metals. This trend highlights a broader effort by central banks to diversify reserves and hedge against global macroeconomic uncertainty. Analysts suggest that such robust institutional demand provides a solid floor for gold prices, signaling long-term confidence in the metal as a primary reserve asset.