Gold as a store of value works better when the world is using it as a reserve, but they don’t anymore so it is just like any other limited supply commodity and doesn’t necessarily need to go up in price due to inflation. It only will go up due to emotion.
In 2022 alone, central banks purchased 1,136 tons of gold[1]. The us government holds over $500b in gold[2]. Gold is still valuable as a reserve asset because it’s highly liquid, demanded by every economy, and has low inflation. Central banks frequently do settle balances between each other by transferring gold (often just involve moving the gold from one part of a warehouse in London to another part). Gold hasn’t gone away, and it’s not fading out either.
It is not true that central banks "frequently" settle balances between each other by transferring gold. This is an event rare enough that it would typically be reported in financial newspapers if it happened.
