New Delhi, Jan. 6 -- Gold as a reserve currency by global central banks may continue in 2026, the pace, however, may slow, driven by easing geopolitical risks, evolving monetary policy dynamics and potential shifts in the US dollar trajectory, according to a recent report by YES Bank Economics Research.

The report notes that heightened global uncertainty and increasing bets against the US dollar as a dominant reserve currency had led to a sharp surge in central bank gold purchases in recent years. While this structural trend is expected to persist, the momentum of accumulation may moderate in 2026 as risk premiums cool and macroeconomic conditions stabilise.

YES Bank report highlighted that the US Federal Reserve's rate-cutting cycle, w...