Gold's Gleam: Central Banks Boost Reserves Amid Geopolitical Tensions

Central banks in emerging markets are increasingly buying gold to diversify their reserves amid geopolitical tensions and the G7's discussion on frozen Russian assets. The demand has propelled gold prices to a record high, highlighting its status as a safe-haven investment during global economic uncertainty.

Central banks in emerging markets are turning to gold as a means to diversify their international reserves, according to Russia's central bank. This shift is largely driven by efforts from G7 nations to utilize frozen Russian assets, amplifying interest in the precious metal as a safe-haven investment.

Gold has seen a significant price rise, soaring by 59% this year and hitting a record $4,381 per troy ounce on October 20. This surge is attributed to the geopolitical tensions and uncertainty surrounding U.S. trade tariffs, causing a scramble from investors seeking stability.

Amidst these developments, it is reported that $210 billion of the estimated $300 billion in frozen Russian assets are located in Europe, with Euroclear in Brussels holding a major portion. As of November 14, Russia's combined gold and foreign exchange reserves are valued at $734.1 billion, with the euro trading at 0.8630 per U.S. dollar.

(With inputs from agencies.)