Analysts from ANZ Research suggest that global central banks' demand for gold may expand this year. While rising gold prices and increased volatility in January put pressure on purchases, central banks with relatively low gold holdings could generate new demand. They added that a key theme this year may be the emergence of new official sector buyers beyond traditional purchasers, pointing to the Malaysian central bank’s recent net purchase of gold—its first since 2018. A potential downside risk involves selling by developed-market central banks, though the strategists consider this unlikely. "Given the geopolitical and fiscal challenges facing many developed economies, gold continues to play a vital role in reserve portfolios," they noted. Spot gold fell 0.2% to $5,168.03 per ounce.