Eastern European Central Banks Have Become the World's Largest Buyers of Gold.

Central banks of Eastern European countries have acquired the most gold in the global market due to political tension and the war in Ukraine, Bloomberg reported.

According to the World Gold Council, Poland was the largest buyer of gold in the world in the second quarter.

'People feel unsafe and this is a powerful motivator for a region that has already had brutal wars in the past and is now experiencing the deadliest conflict on the continent since World War II,' Bloomberg commented.

The Czech central bank has gold reserves of approximately 150 billion dollars (almost half of GDP), which is one of the largest reserves in the world relative to proportion.

In light of changing geopolitical conditions, buying gold has become a popular strategy for monetary policy. Goldman Sachs Group Inc. included gold in the list of most popular commodities until 2025, forecasting that prices will continue to rise to 3,000 dollars per ounce by the end of next year during Trump's presidency.

'Geopolitical fragmentation is favorable for gold, and the gradual weakening of the dollar will be another factor supporting its growth,' J. Safra Sarasin stated in his report.

Gold is not only a safe haven for Eastern European countries but also a political tool, as it helps balance their relations with the West, Russia, and China. Hungary increased its gold reserves by over 10% to 110 tons this year.