Gold Drop Triggers Alert In Central Bank

Gold Drop Triggers Alert In Central Bank

Central banks across the world are tightening oversight of their gold reserves after prices plunged by 18.5 percent within weeks, shaking confidence in the asset long seen as a safe haven.

The fall has raised fresh concerns about market stability.

Gold, which peaked at about $5,589 per ounce in late January, dropped to around $4,551 by mid-March, marking one of its weakest runs in over a year.

Analysts link the decline to tighter policies by the Federal Reserve, rising inflation, and a stronger dollar.

Despite the slide, many central banks still view gold as a key reserve asset.

In Nigeria, the Central Bank of Nigeria has expanded its holdings to about $3.5 billion as part of efforts to diversify reserves and support the naira.

Experts say the drop creates both risks and opportunities, as lower prices could encourage fresh purchases while reducing the value of existing holdings.

Policymakers are now watching closely to see whether the market will stabilise or fall further.