Central BanksOctober 05, 2026Day One Session Spotlight: Joachim Nagel on gold, geopolitics, and the changing role of central bank reserves

AI desk brief

Bundesbank President Joachim Nagel said geopolitics is reinforcing gold’s role in central bank reserves, arguing that sanctions risk, fragmentation and rising uncertainty make physical gold more attractive because it carries no counterparty risk and cannot easily be frozen. He framed the post-Brexit/Bretton Woods evolution as “anchor, retreat and return,” noting that central banks have been net gold buyers again since the global financial crisis as rates fell and geopolitical risks rose.

Nagel also linked the macro backdrop to gold demand: recent Middle East tensions, energy-route disruptions and supply-chain shocks can lift inflation if they feed into pricing and wages, while the ECB remains data-dependent and flexible. His message was that gold is increasingly viewed by reserve managers as a strategic diversification asset rather than just a commodity.