Global Trend: Countries Repatriating Gold Amidst Russian Sanctions

A survey conducted by Invesco reveals that an increasing number of countries are repatriating their gold reserves as a safeguard against potential sanctions, following the freezing of Russia's gold and forex reserves by the West in response to the invasion of Ukraine. The study also shows that central banks are concerned about the precedent set by the sanctions and are finding gold more attractive as a result. Additionally, geopolitical tensions and the expectation of higher inflation are leading central banks to diversify away from the US dollar and invest in emerging markets. Infrastructure, particularly renewable energy projects, is seen as the most attractive asset class, while concerns over China make India an attractive investment destination.