Central banks are hoarding gold, but one Asian official says it might be time to sell

Central Bank Gold Holdings - The Philippines' central bank holds gold that constitutes about 13% of its $109 billion gross international reserves, which is higher than most Asian counterparts [2][7] - The ideal gold ratio for the central bank should be between 8% to 12%, indicating a potential need to reduce gold holdings [2] Price Trends and Market Dynamics - Gold prices have surged this year, briefly exceeding $4,380 per troy ounce before retreating below $4,000 due to easing geopolitical tensions and profit-taking by investors [2][4] - The price of gold has increased approximately 52% this year and 30% in the last two months, driven by significant central bank purchases and global uncertainties [4][5] Central Bank Strategy and Debate - There is an ongoing debate within the Bangko Sentral ng Pilipinas regarding whether to continue accumulating gold or to start selling to realize profits [3] - The current governor of the central bank has described gold as a "very poor investment" but acknowledges its role as a hedge in a diversified portfolio [4] Future Outlook - Goldman Sachs anticipates that central banks and institutional investors will continue to increase their gold exposure amid global uncertainties, projecting a gold price of $4,900 per ounce by the end of 2026 [6]