Central Banks’ Gold Spree To Catapult Prices As Demand Surges Over A Decade

EDITOR'S NOTE: Central bank gold purchases have experienced the strongest start to a year in over a decade, sending ripples through the precious metals market. This surge in demand from influential financial institutions can significantly push up gold prices, making it a major driving force in the market. As central banks around the world accumulate vast quantities of gold, investors are keenly watching the impact of these large-scale acquisitions on the metal's value. The article you’re about to read delves into the latest central bank gold buying trends and explores the implications of this remarkable demand on the global gold market.

(Kitco News) The gold market continued to receive support from central banks as countries kept adding gold to their reserves in February, marking the strongest start to the year since at least 2010, according to the latest data released by the World Gold Council (WGC).

Global gold reserves increased by 52 tonnes in February, rising for the 11th month in a row, the WGC said Tuesday. In January, central banks bought 74 tonnes of gold. And that follows record levels of last year, with 1,136 tonnes purchased.

Year-to-date, central banks' net purchases stand at 125 tonnes. "This is the strongest start to a year back to at least 2010 – when central banks became net buyers on an annual basis," said WGC's senior analyst Krishan Gopaul.

On a y-t-d basis, central banks have reported net #gold purchases of 125t. This is the strongest start to a year back to at least 2010 – when central banks became net buyers on an annual basis. Read more here: https://t.co/IRZIY7hqfv pic.twitter.com/YjBWIvM67A

— Krishan Gopaul (@KrishanGopaul) April 4, 2023

Source: Twitter

The biggest purchaser in February was the People's Bank of China, with 25 tonnes bought. This was the fourth monthly increase for China, during which the PBOC added 102 tonnes of gold.

The Turkish central bank bought gold for the 15th month in February, adding 22 tonnes to its reserves. Turkey was the largest gold buyer last year.

Also, the Central Bank of Uzbekistan added eight tonnes, Singapore bought seven, and the Reserve Bank of India added three.

The National Bank of Kazakhstan was the only net seller, offloading 13 tonnes.

Global gold reserves rose by 52t in February – the eleventh consecutive month of net purchases. Get the latest data here: https://t.co/jvdoJVjxaY pic.twitter.com/okyA0v4GXp

— World Gold Council (@GOLDCOUNCIL) April 4, 2023

Source: Twitter

The February data excludes newly revealed Russia numbers, the WGC added. Russia disclosed that it bought one million ounces (31 tonnes) of gold between February 2022 and March 2023.

"Based on the new information, gold reserves now account for 24% of Russia's international reserves," said Gopaul.

Originally published by: Anna Golubova on Kitco News