Gold Rises to Second Spot as Central Banks Seek Safe Haven

A shift in global reserve asset allocation is underway. Recent data shows that gold has surpassed the euro to become the second-largest reserve asset, trailing only the U.S. dollar. The European Central Bank (ECB) reports indicate that by year’s end, 20% of central bank reserves were allocated to gold, while the euro represented a mere 16%. This trend reflects the increased demand for safe haven assets amidst economic uncertainty and rising inflation concerns.