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EM Central Bank Gold Buying Neutral In February

By Kitco News
Wednesday March 25, 2015 12:15 PM

(Kitco News) - Only three emerging market central banks took advantage of weaker gold prices in February and added to their reserves, according to the latest data from the International Monetary Fund (IMF).

According to the IMF, last month, Kazakhstan’s central bank was the biggest gold purchaser, buying 2.6 tonnes of gold and boosting its reserves to 196.1 tonnes. This was the 29th consecutive month that the central bank has added to its gold reserves.

Also buying gold in February were the Tajikistan and Malayasia central banks, which each increased their gold reserves by 0.6 tonnes.

Comex April gold futures lost 5.45% in February and some analysts said that they expected to see more demand from emerging market central banks as a result of weaker prices.

Analysts at Commerzbank noted that central bank buying was neutral last month as Turkey’s central bank’s reserves fell by 4.6 tonnes. However, many analysts tend to not pay much attention to Turkey’s reserves since they include commercially held gold stocks, increasing its volatility.

According to some analysts, one country that raised a few eyebrows with its absence from the list was Russia. This is the second month that the Russian central bank hasn’t added to its reserves, but Commerzbank added that the country “added considerable quantities of gold to its reserves from April to December.”

Russia was the biggest gold purchaser in 2014, according to data compiled by the World Gold Council; the central bank bought 174.8 tonnes of gold last year.

By Neils Christensen of Kitco News; nchristensen@kitco.com
Follow Neils Christensen @neils_C



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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