Central bank reserves are long-term—so they’re a long-term positive.


They have little to do with short-term price action.
But in the near term, downside room is limited.
To understand this, note that many non-US central banks have been stockpiling gold since the 2022 Russia-Ukraine war.
At that time, the US froze and sanctioned Russia, prompting some non-US countries to “sell US Treasuries and buy gold.”
They’ve been stockpiling every year.
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