It has been reported that the Saudi Central Bank (SAMA) has been secretly buying around 160 tonnes of gold from Switzerland since early 2022. This move appears to align with a broader trend among countries like China and Thailand, which have been increasing their gold reserves to hedge against dollar risks, especially after the West imposed sanctions on Russia following the Ukraine war.

These gold purchases have contributed to a surge in the gold market, with Saudi Arabia’s demand shifting from being price-sensitive to a price-driving force. This accumulation of gold by SAMA is seen as part of a strategy to strengthen reserves with assets that are more resilient to political and economic sanctions. The Saudis are reportedly using bullion banks in Switzerland to manage these transactions, keeping them discreet by not officially disclosing these acquisitions as part of their central bank reserves.