World Gold Council: central banks around the world will continue to buy gold net.

SMM News: the World Gold Council (WGC) said that the position of gold in the reserves of central banks is still very important.

Over the past few years, central banks around the world have significantly increased their holdings of gold reserves and have been net buyers of gold for many years.

Shaokai Fan, head of central bank relations at WGC, said in his latest report that central banks around the world will continue to buy gold net.

According to the report, 20% of central banks are expected to buy gold this year, a significant increase from 8% last year. In fact, 51 of the world's 150 central banks participated in the survey this year, the highest level in three years.

"We think central banks will continue to buy, but the amount of gold they bought may not reach the level of previous years."

In addition, the survey shows that more central banks will enter the market to increase their holdings of gold.

Affected by the epidemic this year, central banks have adopted a very loose monetary policy, which has also had an impact on gold. Seventy-nine per cent of the central banks surveyed said gold's performance in the crisis was one of the reasons for its plans to increase its holdings.

The good liquidity of the gold market and the risk of default are also a big reason for the central bank to buy gold, but negative interest rates are the biggest driver of gold investment this year, according to the survey.

88% of respondents said that negative interest rates would affect their choice of reserves.

Central banks are full of rated sovereign bonds, which are affected by very low or even negative interest rates. And central banks also want to strike a balance between safety, liquidity and returns, which makes gold more attractive. "

In addition, central bank demand for gold provides a signal of stability to the market, which is also important.

"an important aspect of the international financial system makes gold an important asset."

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