2025 Public Sector Perspectives

Conclusion Gold’s value is intrinsic; it is not tied to any single sovereign entity. As a result, it is increasingly seen by central banks as a hedge against volatility and geopolitical risk. Given that these risks remain elevated, gold is likely to continue to become a more significant part of central banks’ portfolios to preserve value and, if necessary, a means of exchange. The distribution of gold holdings may also become more disbursed, away from the traditional, i.e. “western”, financial centers, to increasingly reflect the changing geopolitical landscape. In effect, gold has become a growing part of a longer- term strategy for diversifying FX reserves. The distribution of gold holdings may also become more disbursed, away from the traditional, i.e. “western”, financial centers, to increasingly reflect the changing geopolitical landscape. In effect, gold has become a growing part of a longer-term strategy for diversifying FX reserves . Citi Perspectives for the Public Sector 29