Global Recession: Central Banks Increasing Gold Reserves A Potential Signal For Upcoming Crisis

Global Recession: According to the report of KDR Commodities, the world’s central banks are trying to increase their gold reserves. In January and February 2024, central banks added a total of 64 tons of gold to their reserves, four times more as compared to the previous year at the same time. The central banks have been doing this continuously for nine months, starting from June 2023. The war between Russia-Ukraine and the Middle East after the COVID-19 pandemic, inflation and inflation, and growing uncertainty have made gold the favourite of the central banks. 

Central Banks Increasing Gold Reserves

In January, the central banks bought 45 tons of gold. Out of which, in February, the reserve of the People’s Bank of China increased by 12 tons to 2,257 tons. Whereas the reserve of the National Bank of Kazakhstan increased by 6 tons in February and reached 306 tons. Apart from this, India’s central bank RBI bought 6 tons of gold in February and now the country’s gold reserve has reached 817 tons. Due to economic issues around the world, central banks do not want to take any risks and are investing in gold for better security.