As gold hits record highs, central banks keep accumulating, and a viral tweet from Miles Franklin is asking the question on everyone’s mind.
A tweet by precious metals dealer Miles Franklin recently drew attention across financial circles. The tweet noted: “Gold hit $3,500 in April and central banks kept buying like it was cheap. They’ve stacked over 1,000 tons yearly for three years straight (WGC). Now, 95% expect gold reserves to keep rising while dollar reserves fall. What are they bracing for?”
It’s a timely question. Despite hitting a historic high of $3,500.05 per ounce in April 2025, central banks haven’t paused their gold purchases. According to the World Gold Council (WGC), official sector buying has exceeded 1,000 metric tons annually for three consecutive years. That kind of consistent demand hasn’t been seen since the 1960s.
Why Central Banks Aren’t Slowing Down
The WGC’s 2025 Central Bank Gold Reserves Survey confirms the trend: 95% of central banks expect global gold reserves to rise over the next year, while nearly three-quarters anticipate a decrease in their U.S. dollar holdings.
Analysts point to several drivers behind the move: geopolitical tensions, inflation hedging, and efforts to reduce exposure to U.S.-led financial systems. Rhona O’Connell of StoneX said this wave of buying suggests central banks view gold as a “strategic shield” amid growing global uncertainty.
“Gold’s resilience in crisis, its role in diversification, and the shift away from the dollar are all feeding into this,” the WGC noted.
Market Snapshot: Gold and Silver Today
As of June 17, spot gold is trading around $3,430 per ounce, up more than 45% year-over-year. Silver is currently priced near $36.50 per ounce, still well below its 2011 high of $49.80.
With the U.S. Federal Reserve expected to begin easing interest rates later this year, many central banks appear to be positioning ahead of falling real yields, a scenario in which gold historically performs well.
