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
Number of Global Central Bank Rate Cuts Central banks globally are responding to slowing inflation and the need to stimulate economic growth by cutting interest rates at an unprecedented pace since the COVID-19 pandemic. Image: BofA Global Investment Strategy
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
Central Banks – Global Monetary Policy Stimulus Leads Global Manufacturing PMI As global monetary policy stimulus tends to lead global manufacturing PMI by 8 months, could this signal the end of the economic slowdown? Image: Topdown Charts
Liquidity Policies and Central Bank Balance Sheets Central banks have barely decreased the amount of QE stock, suggesting a deliberate and measured strategy in scaling back economic support. Image: BofA Global Investment Strategy