Bundesbank Governor Joachim Nagel said that the rising level of government debt has strengthened the reason for the central bank to increase its gold holdings. He said on Monday that the recent rise in global government bond yields has once again increased the relative appeal of debt securities. At the same time, rising debt levels have heightened market concerns about the credit risk of these assets, and external geopolitical risks may continue to influence reserve management decisions. Speaking in Sorrento, Italy, Nagle concluded that for central banks, there are still plenty of reasons to further diversify the allocation of gold. Germany has the second-largest gold reserves in the world, but its holdings have remained stable in recent years, while other monetary policy institutions have increased their purchases significantly. The Russian-Ukrainian conflict was a key catalyst. After Washington imposed comprehensive financial sanctions against Russia, some central banks increased their efforts to buy gold. Recently, concerns about America's growing debt burden have fueled market expectations that the central bank may diversify its allocation, reduce its dependence on the dollar, and further increase its gold holdings.

Bundesbank Governor Joachim Nagel said that the rising level of government debt has strengthened the reason for the central bank to increase its gold holdings. He said on Monday that the recent rise in global government bond yields has once again increased the relative appeal of debt securities. At the same time, rising debt levels have heightened market concerns about the credit risk of these assets, and external geopolitical risks may continue to influence reserve management decisions. Speaking in Sorrento, Italy, Nagle concluded that for central banks, there are still plenty of reasons to further diversify the allocation of gold. Germany has the second-largest gold reserves in the world, but its holdings have remained stable in recent years, while other monetary policy institutions have increased their purchases significantly. The Russian-Ukrainian conflict was a key catalyst. After Washington imposed comprehensive financial sanctions against Russia, some central banks increased their efforts to buy gold. Recently, concerns about America's growing debt burden have fueled market expectations that the central bank may diversify its allocation, reduce its dependence on the dollar, and further increase its gold holdings.