Central banks pile into gold on the back of Trump-driven turbulence

Thu July 24 2025

Central banks globally show no sign of slowing their advance into gold, with the political and economic turbulence created by Donald Trump’s foreign policies stoking demand for the precious metal.

According to research from Invesco, an investment firm, central banks continue to expand their gold holdings, with almost 50 per cent of money authorities planning to increase allocations over the next three years.

“Amid rising uncertainty and constrained currency diversification, gold has re-emerged as a core pillar of reserve resilience,” said Rod Ringrow, head of official institutions at Invesco.

“Gold is valued not only for its historical role as a safe haven but also for its political neutrality, a critical factor as geopolitical risks rise,” he added.

Trump’s presidency has been disorientating for financial markets, with his “liberation day” tariffs announcement on April 2 tanking investment markets. US stocks experienced their worst week since the Covid-19 crash as a result and Asian stocks suffered their biggest drop in decades.

Just last week, Jamie Dimon, the boss of JPMorgan, said in a statement as the US bank reported its quarterly results: “Significant risks persist — including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices.”

One Latin American central banker cited in Invesco’s 49-page Global Sovereign Asset Management Study, which is now in its 13th year, said: “Gold is a diversifier, but it’s also a form of protection and a backstop if all else fails.”

The findings tally with a June poll of 72 central banks by the World Gold Council. Its survey showed a record number of respondents expect gold holdings to increase over the next 12 months, with 43 per cent saying they anticipated their gold reserves rising, up from 29 per cent a year earlier.

Shaokai Fan, global head of central banks at the World Gold Council, said: “Western countries have stopped selling gold, while emerging markets have started to accelerate their buying, catching up and building larger gold reserves.”

Speaking specifically about buying for 2024, Fan said central banks’ appetite for gold was “insatiable”, with purchases surpassing 1,000 tons for the third consecutive year.

Central banks have been one of the key drivers of a long-running gold rally that has seen prices double since late 2022 when the pace of buying doubled after Russia’s invasion of Ukraine.