Central banks across the globe reported 60 tonnes of net purchases in October, the largest one-month increase in 2024, according to a report released Wednesday by the World Gold Council.
The Reserve Bank of India led the way, with 27 tonnes of gold added to its reserves, followed by Turkey and Poland, which added 17 and 8 tonnes, respectively.
Sale data from the International Monetary Fund reported net sales were negligible during the 31-day period.
Recovering from a lull
Central bank gold purchases skyrocketed in early 2022 following Russia’s invasion of Ukraine, leading many economists to speculate the threat and eventual implementation of sanctions against Russian operations spurred the buying.
However, at the beginning of 2024, purchases began to slow to a low of less than 25 tonnes added in August.
Lina Thomas, commodities strategist with Goldman Sachs Research, said in a recent note, “Since 2022, gold prices have surged 40% even as U.S. interest rates were climbing. That is very strange. Typically, higher interest rates make gold less attractive — because gold doesn’t pay any interest, unlike bonds.”
Thomas said the sanctions imposed on Russia were a “wake-up call for central banks worldwide.
“They began to diversify their reserves away from the dollar and into an asset no one could freeze — and that is gold.”
Other movers
Turkey’s central bank added 17 tonnes in October, marking the 17th straight month of net purchases, which have increased gold reserves by 72 tonnes, or 34%, in 2024.
Poland has also been a buyer in 2024 as tensions continue to increase nearby with the war in Ukraine.
The World Gold Council report shows central banks have ramped up purchases in Q3 2024 to levels comparable to the buying seen in 2022.
“While rising gold prices appear to have inhibited some buying and prompted ta ctical sales over recent months, October’s rebound in report activity signals continued interest from central banks to accumulate gold within their reserve portfolios,” the report states. “This reaffirms the role gold plays as a strategic asset for central banks to manage risks and diversify reserves.” Augusta Precious Metals(Full Review) $0 (10 Years) $50,000 "Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings Goldco (Full Review) Vary $25,000 Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee American Hartford Gold (Full Review) Vary $10,000 American Hartford Gold, ranked #1 Gold Company on Inc. 5000, boasts thousands of A+ BBB ratings and 5-star reviews, endorsed by Bill O'Reilly and Rick Harrison..Don't miss out on the opportunity to invest in Gold & Silver. Check out our featured companies today: (Ad)
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