According to the latest data disclosed by the World Gold Council, central banks around the world added another 31 tons of gold to their official reserves in October, and central banks' gold holdings are currently at their highest level since 1974.

According to the latest data disclosed by World Gold Association , 1 in October global added 31 tons of gold to official reserve , and the central bank's gold holdings are currently at the highest level since 1974 .

In the third quarter only, central banks of various countries increased their holdings in by nearly 400 tons of gold in the third quarter, three times higher than in the third quarter of 2021. It is the largest quarterly increase in the central bank's gold reserves since the World Gold Council began recording in 2000. So far this year, central banks of various countries purchased 704 tons of gold , exceeding the total purchase volume in any year since 1967. At that time, gold was bought out and coincided with the stagflation period and recession of the economy from its peak to the 1970s.

Behind the gold purchase is the disappointment of countries with the US dollar-dominated system. Since the US dollar began hiking interest rates on , the appreciation of the US dollar has returned, and the depreciation of local currencies in various countries has become unstoppable. The performance of gold during crisis periods and its role as a long-term store of value and inflation hedge against is a key determinant of central banks in various countries' decision to hold gold. Therefore, selling the US dollar and buying gold has become a new trend, and it is also to diversify foreign exchange reserves and resist the endless fetching of the US dollar.

So we see that since the beginning of this year, the global US dollar foreign exchange reserves have shrunk by about 1 trillion US dollars to 12 trillion US dollars this year, a drop of as high as 7.8%.

Under this background, the US dollar short army is growing stronger. Sonja Laud, chief investment officer of asset management firm Legal & General (LGIM), said the dollar should soften further after a 2022 rally driven by safe-haven capital flows and the Fed’s aggressive rate hike cycle . 2023 should "weak further", while emerging market countries will be the first to enjoy the dividend of the US dollar falling .

Earlier, Wall Street well-known investment banks JPMorgan Chase and Morgan Stanley both believed that the US dollar would surrender and weaken in 2023. The era of strengthening the US dollar is over, and it has laid out US dollar short positions in advance. Investors increased their holdings of 321,758 US dollar short contracts in the week ending November 20, rising to a new high in more than a year.