Demand for gold among central banks rose in July despite the metal reaching all-time highs, according to a new report from the World Gold Council.
The report, released Tuesday and compiled using data from the International Monetary Fund and publicly available information, suggests central banks added a net 37 tonnes of gold to their holdings, the highest increase since a 45-ton jump in January.
The National Bank of Poland led purchases in July, followed by the banks of Uzbekistan and India.
“We expect central bank demand for gold to continue in the coming months,” wrote EMEA Senior Analyst Krishan Gopaul.
Breaking down the purchases
In total, seven central banks added gold, while just one reduced its holdings In July.
Poland’s purchase lifted its total gold holdings to 392 tonnes, 15% of the country’s total reserves.
“Poland has been on a gold buying spree since April, accumulating 33 tonnes over the last four months,” Gopaul wrote.
The Reserve Bank of India continued its buying streak that lasted every month of 2024 by adding 43 tonnes. The country, in total, holds 846 tonnes in reserve.
The only net seller for July, Kazakhstan, offloaded 4 tonnes, reducing the country’s total holdings to 295 tonnes, of 55% of its reserves.
Price effect
The World Gold Council expects central bank buying to remain strong in the face of rising prices. Though the trend of high-volume purchases has subsided as gold prices reach new highs, demand will continue, Gopaul wrote.
“The longstanding trend of net buying remains intact. This reinforces the findings from our latest central bank survey, which highlights several reasons (such as gold’s role as a store of value and its performance in times of crisis) why, despite the elevated price, central banks are still keen to accumulate gold. Based on these findings, we continue to be confident in our expectation that more buying is to come,” the report reads.