WGC: Central bank gold demand easing

New report from the World Gold Council shows central bank purchases in August were lowest since March

 WGC: Central bank gold demand easing  (photo credit: SHUTTERSTOCK)
WGC: Central bank gold demand easing
(photo credit: SHUTTERSTOCK)

Central banks added just 8 tonnes of gold to net reserves in the month of August, according to a report released Thursday by World Gold Council Senior Research Lead, APAC Marissa Salim.

The results showed the lowest buying activity from reserve banks since March and bucked the 12-month average of 33 tonnes of monthly purchases.

 This chart shows year-to-date central bank net purchases and sales. (Source: World Gold Council) (credit: PR)
This chart shows year-to-date central bank net purchases and sales. (Source: World Gold Council) (credit: PR)

“While overall demand has tapered from the early 2024 highs, accumulation of gold reserves remains positive, with activity concentrated in emerging market central banks,” Salim said.

Salim speculated that gold’s consistent upward trend in price may have influenced a deceleration in purchasing by banks across the globe.

“However, it is worth noting that sales have not increased, which may signal a likely wait-and-see approach rather than a change in trend,” she said. “Specially, since all other key drivers of central bank decision making, such as the need for effective diversifiers and gold’s performance in time of risk remain in place.”

Who bought in August?

The National Bank of Poland was the larges buyer of the month, adding a net 6 tonnes, bringing its gold holdings to 398 tonnes.

The largest buyer of 2024 Turkey continued its trend of acquiring the yellow metal and added 3 tonnes to its reserves. August marked the 15th consecutive month of net purchases as de-dollarization rumors continue to swirl around the BRICS economic alliance. Turkey requested to join the alliance and the United States later said it respected the decision.

Meanwhile, the Central Bank of Kazakhstan reduced its gold reserves by 5 tonnes in August.

Other notable purchasers during the month were:

  • Reserve Bank of India, 3 tonnes
  • Czech National Bank, 2 tonnes
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