Central Banks Gold Purchases Break Records in Q1 of 2023
The World Gold Council (WGC), the global gold data organization has released the latest report that states that central banks have consistently purchased gold during the first quarter of 2023. Central banks have added nearly 230 metric tonnes of gold to their national reserves, representing a 176% rise compared to the purchases made in Q1 of 2022.
Central Banks Register Strong Gold Demand
Central
banks have registered a strong demand for gold during the first quarter of the
year, according to the latest report of the World Gold Council (WGC),
which maintains global data on demand and gold production. The Gold Demand
Trends report has revealed that central banks purchased gold consistently,
adding nearly 230 metric tonnes during Q1 2023. This represents a rise of 176%
over the purchases in Q1 of 2022, signaling strong demand for
the yellow metal.
However,
when compared to the numbers from the last quarter, central banks and other
institutions have reduced their demand significantly, with purchases falling by
150.2 metric tonnes.
The
WGC has stated that limited information and delayed reporting make predictions
very difficult. At this point, it is really difficult to predict if gold demand
will rise or subside this year, but it is very positive in its outcome, stating
that "intentions have consistently been a leading indicator for buying
over the last few years, and our central bank surveys suggest little change to
the positive trend."
WGC Credits Four Central Banks for Q1 Purchases
The
WGC report categorically credits four central banks for most of the gold
purchases during the quarter. The Monetary Authority of Singapore (MAS) added
69 metric tonnes, pushing its reserves to 222 metric tonnes, registering an
increase of 45% over the last quarter. The
People’s Bank of China (PBOC) registered purchases to the tune of 120 metric
tonnes. China’s gold reserve now stands at 2,068 metric tonnes.
China
has been consistently buying gold since November, adding 102 metric tonnes to
its reserves in five months. In March, the PBOC reportedly purchased 18 metric
tonnes. Turkey purchased 45 metric tonnes of gold during Q1 but sold 15 metric
tonnes in its domestic market after a temporary gold import ban, with reserves
pegged at 572 metric tonnes, representing more than 30% of its central bank
reserves. India added 7 metric tonnes of gold during Q1, registering a national
gold reserve of 795 metric tonnes.
What is your take on the latest report of the World Gold Council on central bank gold demand to increase their reserves? Please post your comment.
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