Many countries continue to withdraw their gold reserves from the US Federal Reserve. Based on reports from US Federal Reserve, the amount of gold in the depository has fallen to 5,950 tons.
The amount of gold in the world’s largest gold depository has reached the lowest level in the last 20 years.
The similar course of events happened before the 2008 financial crisis, when approximately 400 tons of gold were withdrawn by foreign central banks. It seems that the same is happening now.
The current withdrawal started in 2014 and continues on. All this indicates that the trust in the US Federal Reserve is fading.
Any Federal Reserve’s indication about raising interest rates incites destabilization in global financial and commodity markets.
Even though it seems that demand for gold is decreasing, it is not the case. An example which proves that is China, which has increased its gold reserves to 600 tons. And many other customers are buying gold in record amounts.