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Informist, Thursday, Oct. 3, 2024

 

MUMBAI – Global central banks net purchased 8 tonnes of gold in August, the least since March, the World Gold Council said quoting the International Monetary Fund data. The overall demand has tapered from the early 2024 highs, but accumulation of gold reserves remains positive with activity concentrated in emerging market central banks, the WGC said.

 

In July, global central banks purchased 37 tonnes of gold, the second-highest monthly buying this calendar year. In January, they bought 45 tonnes of gold.

 

"August net purchases were the lowest since March when central banks reported a net sale of 2 tonnes; it was also well below the 12-month average of 33 tonnes," Marissa Salim, senior research lead, Asia-Pacific, World Gold Council said. "On a year-to-date basis, emerging central banks account for 70% of total reported net purchases with Turkey making up 25% of overall central bank buying thus far," Salim said. 

 

Four central banks have added at least 1 tonne or more of gold to their reserves in August, while only one central bank reduced its gold holdings, the report said. The National Bank of Poland has added 6 tonnes of gold to its reserves, taking the gold holdings of the country to 398 tonnes, the council said. Poland was the largest buyer in August and "Poland has continued its net purchase trajectory over the past five months, adding 39 tonnes over this period", according to the report.

 

"Reported central bank activity in August was markedly slower. While gold's price performance is not a top strategic driver for central banks purchase, its consistent upward trend could have influenced the deceleration," Salim said. "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.  

 

The other major buyers in August were the Central Bank of Turkey and the Reserve Bank of India at 3 tonnes each, and the Czech National Bank at 2 tonnes, the council said. The Central Bank of Kazakhstan was the only net seller in August, whose gold reserves fell by 5 tonnes to 290 tonnes, or 55% of total reserves, the report said.

 

At 1650, the most traded December gold contract was $2,664.4 per ounce, down 0.2% from the previous close. End

 

US$1 = INR 83.97

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Sandeep Sinha

Edited by Deepshikha Bhardwaj

 

 

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