S&P 500 and Global Central Bank Rate Cuts With most central banks cutting rates or holding steady over the past six months, the easy policy mood has helped lift risk appetite and pushed markets like the S&P 500 higher. Image: Bloomberg
Global Central Bank Gold Reserves A striking 95% of reserve managers expect central banks to boost their gold holdings within 12 months, up from 81% a year ago—clear evidence of a sustained rush into the yellow metal. Image: Deutsche Bank
Gold – Global Central Bank Holdings Central bank gold demand cycles respond to global economic and political factors. Recently, demand has increased amid financial instability, currency trust concerns, inflation, sanctions, and geopolitical conflicts. Image: Goldman Sachs Global Investment Research
Monthly Flow of G4 Central Bank Asset Purchases Global central banks are continuing to reduce their asset holdings at a robust pace, primarily through balance sheet runoff and measured non-reinvestment of maturing securities. Image: Deutsche Bank
Central Bank and Institutional Demand for Gold Goldman Sachs expects ongoing strong demand from central banks—especially those in emerging markets—to continue boosting gold prices through 2025. Central bank gold purchases have risen fivefold since 2022. Image: Goldman Sachs Global Investment Research
Central Bank Gold Purchases The freezing of Russia’s central bank assets has had a profound impact on global financial strategies, driving central banks to significantly increase their gold holdings as a safeguard against economic and geopolitical risks. Image: Goldman Sachs Global Investment Research
Central Bank Gold Holdings Despite a significant gold price rally, private investors have largely been absent, especially compared to the aggressive purchases made by central banks. Image: Alpine Macro
Aggregate G6 Central Bank Balance Sheet The aggregate G6 central bank balance sheet is expected to continue decreasing in 2024 and 2025 as central banks unwind their pandemic-era asset purchase programs through quantitative tightening measures. Image: BofA Global Research
Central Bank Policy Rate Changes Goldman Sachs has revised its forecast regarding interest rate policies, suggesting significant declines in policy rates across most economies over the next 12 months, driven by easing inflation and slowing economic growth. Image: Goldman Sachs Global Investment Research
Interest Rates – Central Bank Policy Rate Hikes vs. Cuts Emerging market central banks typically take the lead in initiating monetary tightening and easing cycles. In 2024, their approach has shifted away from aggressive easing. Image: BofA Global Investment Strategy
Tech Stocks – G3 Central Bank Balance Sheet vs. Nasdaq 100 Will the divergence between central bank liquidity and tech stock performance continue through 2024? Image: BofA Global Investment Strategy