Header

Ticker

6/recent/ticker-posts

Central Banks Gold Purchases Break Records in Q1 of 2023

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.


Image of 999.9 pure 1000 grams gold bars on display


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.

Post a Comment

0 Comments