Institution: The surge in the US dollar may suppress the demand for gold purchases by central banks

Odaily Odaily: Large-scale gold purchases by central banks have previously been one of the factors supporting the rise in gold prices, and the current surge in the US dollar may curb the demand of central banks. Data from the World Gold Council shows that central banks have purchased 694 tons of gold this year to diversify their holdings and reduce their dependence on the US dollar. George Saravelos, head of foreign exchange research at Deutsche Bank, said that Trump's policies may weaken emerging market currencies. He said: "Many central banks now need to use their US dollar reserves to protect their foreign exchange from capital outflows and prevent excessive weakening of the exchange rate."