Which country has the most gold in the world as the gold sets new records?

Over the past week, the world has witnessed a remarkable increase in the price of gold. Gold prices have continued to reach new highs, with a peak of $2,164 per ounce. On the Kitco exchange, gold prices closed the week’s trading at $2,178 per ounce, up 0.89% from the beginning of the session.

Analysts believe that the central banks’ purchasing activities are one of the reasons for the high gold prices.

Since ancient times, gold has been regarded as a symbol of wealth and power. Today, gold still holds a central position in the global economy. The value of this asset serves as a safe haven in times of economic instability. In addition to being the foundation for monetary policies, gold also plays an important role in maintaining monetary stability and serves as a political tool for countries with the largest reserves.

Below are the countries with the largest gold reserves in the world.

According to the World Gold Council (WGC), as of the end of 2023,

The United States, with 8,113 tons, has the largest gold reserves in the world. This amount of gold is nearly equal to the combined total of the next three countries. According to the WGC, the total value of the United States’ gold reserves is about $543 billion and is predominantly stored in the Fort Knox gold vault and gold vaults at the Federal Reserve Bank of New York.

The second position is held by Germany, with approximately 3,352 tons of gold. In addition to representing economic security, Germany’s gold reserves are also a symbol of the country’s reconstruction and economic stability after the war.

The 10 countries with the largest gold reserves in the world. Chart: MH

The third and fourth positions belong to Italy and France, with reserves of 2,451 and 2,436 tons respectively. In particular, France’s gold reserves have remained almost unchanged in recent years.

Next, the fifth largest country in terms of gold reserves is Russia, with 2,332 tons. The sixth position is held by China, with 2,235 tons of gold, nearly three times that of Japan and India. The tenth position belongs to the Netherlands, with 612 tons of gold.

According to WGC, gold is considered an important component of global central banks’ reserves due to its safety, high liquidity, and investment potential. These institutions currently hold a large portion of the world’s gold, with 20% of global gold production. Analysts believe that the central banks’ demand is also a key factor in keeping gold above the $2,000 support level over the past few months.

Will gold prices continue to rise next week?

Joseph Cavatoni, a market strategist at the World Gold Council, believes that central banks’ gold purchases are strong. Central banks buy gold reserves because gold is safe, highly liquid, and profitable.

Similarly, according to David Meger, director of gold trading at High Ridge Futures, US employment reports put pressure on the US dollar and reinforce expectations of a Fed rate cut this year. These are all factors that are favorable for gold.

Chris Vecchio, Director of Futures & Forex at Tastylive.com, emphasized the importance of timing profit-taking. “People are talking about the record-high price of gold in US dollars. But it is also at a record high in other currencies. It’s not just a story about the US dollar. It is a global issue that is supporting the market“, Chris emphasized.

In addition, there is a factor that is supporting the upward trend of gold. Investors have yet to catch up with this rally. Gold has reached record highs, even as the market has seen continued outflows from gold-backed exchange-traded funds.

References: WGC, Kitco, Sarajevotimes