In the context of gold prices adjusting sharply from historical peaks, buying power from central banks continues to be considered one of the important "backing points" helping the market limit the risk of deep decline.
Although the rate of gold accumulation has somewhat slowed down recently, many countries are still taking advantage of increasing reserves when prices adjust, and new members are increasingly appearing to participate in the gold buying trend.
Recently, the National Bank of Georgia (NBG) said it has purchased an additional 100 million USD of physical gold to strengthen national reserves.
According to NBG, after this deal, the proportion of gold currency in Georgia's total international reserves increased to 15.5%.
The bank said that total international reserves currently reach a record level of 7 billion USD, equivalent to 114.8% of the International Monetary Fund's (IMF) foreign exchange reserves adequacy rating (ARA).
According to data from the World Gold Council (WGC), this is the first time Georgia has increased its gold reserves since March and April 2024 – when the country bought 4.7 tons and 2.5 tons of gold respectively.
NBG said that buying gold is part of a long-term reserve management strategy, helping to diversify assets and improve resilience to global economic fluctuations.
Notably, according to the assessment of the State Bank of Georgia, gold demand from the central banking sector will still be an important supporting factor for the market in the coming time.
It is noteworthy that the gold demand of central banks is often less sensitive to price fluctuations. This characteristic contributes to maintaining a stable foundation for the gold market" - NBG said.
In the context of the global economy still facing many uncertainties, the need to diversify foreign exchange reserves continues to be seen as an important driving force promoting the gold buying trend of central banks.
Although gold prices have adjusted significantly since the peak set at the beginning of the year, many experts believe that cash flow buying from central banks is still a fundamental factor to support the gold market in the long term.
