Inflation leads Asian central banks to build up gold reserves

Kuwaiti gold maker and managing director of Dana solitaire company for formulation and trading of gold and jewellery works at his shop in Kuwait City, on August 23, 2023. Gold prices have been fluctuating in Kuwait for the past few weeks. (Photo by YASSER AL-ZAYYAT / AFP)

SINGAPORE: Gold purchases by the Monetary Authority of Singapore (MAS) and other central banks in Asia have stepped up over recent years amid inflationary pressures and geopolitical uncertainty.

China, Thailand and Singapore led the way in bullion buying between 2013 and 2022, noted World Gold Council data collated by City Index. Gold is generally regarded as a good hedge against inflation and a safe-haven asset during times of uncertainty.