The WGC notes that solely 4 central banks added gold (of a tonne or extra) to their reserves throughout the month of August. Poland led the best way with 6t, persevering with its web buy trajectory over the previous 5 months.
The central banks of Turkey, India and Czech Republic additionally continued to build up gold, every including 3t, 3t and 2t. On a year-to-date foundation, Turkey stays the biggest web purchaser at 52t, adopted by India in second place at 45t.
In the meantime, Kazakhstan decreased its gold reserves for a fourth straight months and is now a web vendor year-to-date. After shedding 5t in August, its gold holdings now stand at 290t, or about 55% of complete reserves.
“Whereas gold’s worth efficiency shouldn’t be a high strategic driver for central banks buy, its constant upward development might have influenced the deceleration,” WGC’s senior analysis lead, APAC, Marissa Salim stated.
“Nonetheless, it’s value noting that gross sales haven’t elevated, which can sign a possible wait and see method moderately than a change in development. Specifically, since all different key drivers of central financial institution determination making, comparable to the necessity for efficient diversifiers and gold’s efficiency in time of threat stay in place.
“In all, our expectation stays optimistic for the remainder of the yr however, as we beforehand mentioned, will possible be beneath final yr’s complete,” she stated.