Investors have shifted to gold by the most since 2012, driven by central banks' buying spree, JPMorgan says

• As central banks pile up gold reserves, investors are also accumulating the precious metal, JPMorgan reports.
• The bank estimates gold accumulation to be at the highest level since 2012.
• But its uncertain the central bank momentum will last, with buy ups normalizing last quarter.

A fixation among central banks on expanding their gold reserves since 2022 has driven investors to also allocate more of the safe haven asset, JPMorgan said in a note on Thursday.

While the bank has found that global traders have largely been underweight non-gold commodity allocations in the past year, their estimated exposure to the yellow metal has increased to its highest level since 2012.