Central Banks Scoop Gold in March as BCA Sees 12-Month Rally
Central banks acquired substantial gold in March, led by Poland, Uzbekistan and China, extending a decade-long de-dollarization trend. Despite elevated short-term tactical risks, BCA forecasts gold could appreciate over the next 12 months given persistent inflationary pressures and slowing U.S. economic growth.
1. March Central Bank Purchases
In March, central banks significantly increased bullion reserves, with major acquisitions by Poland, Uzbekistan and China. These purchases underscore a wider shift away from the dollar and reinforce a decade-long de-dollarization trend driven by emerging market policy objectives.
2. BCA Forecast and Tactical Risks
BCA’s analysis identifies elevated tactical risks over the short term, citing potential interest-rate fluctuations and geopolitical uncertainties. However, the firm projects a renewed gold uptrend over the next 12 months, forecasting gains supported by ongoing inflation concerns.
3. Macro Drivers and Outlook
Persistent inflationary pressures, continued slowing of U.S. economic growth and periodic geopolitical events are expected to sustain demand for safe-haven assets. These factors, combined with central bank buying, create a supportive backdrop for gold and related bullion strategies.