Central banks golden positioning

Gold prices have surged to historic highs, both in nominal and real terms , driven by concerns about deglobalization, geopolitical risks, the potential loss of independence by the U.S. Federal Reserve Board, rising concerns about the economic impacts of tariffs, which were highlighted by the Liberation Day, rising fiscal concerns, and rising inflation expectations in developed markets. In response, central banks in the Western Hemisphere have employed various strategies. Some, such as Mexico and Brazil, have increased their gold reserves. Colombia implemented a rebalancing strategy to maintain target holdings. Meanwhile, Chile and Peru have maintained stable gold reserves. Argentina and Bolivia adjusted their holdings in response to domestic shocks. As of early 2025, Brazil had the largest gold reserves in the Americas, followed by Mexico. However, gold constituted less than 6% of their total foreign reserves. Argentina holds over 16% of its total foreign reserves in gold, while Peru holds only 3.7%. Colombia and Chile hold significantly less, representing less than 1% of their total foreign assets. Canada has not held gold in its reserves since 2016. In early 2025, Bolivia, which holds 95% of its foreign reserves in gold, sold half of its gold reserves, reaching the legal minimum.