Make Kitco Your Homepage

Central bank gold purchases slows to 8.2 tonnes in July

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) -  Central bank gold demand, a powerhouse driver for the gold market that saw record demand in the last two years dramatically slowed in July, according to the latest data from the World Gold Council (WGC)

In a report Thursday, the WGC said that the latest reserve data from the International Monetary Fund shows that central banks collectively bought 8.2 tonnes of gold in July, “the lowest monthly net purchases since December 2018.”

Looking at the buyers and sellers, the WGC said that Turkey bought 19.4 tonnes of gold in July, Qatar boosted its reserves by 3.1 tonnes, the Indian central bank bought 2.8 tonnes and Kazakhstan bought 1.9t. Meanwhile, Uzbekistan sold 11.6 tonnes of its gold and Mongolia sold -6.1 tonnes of gold. Mongolia has lowered its gold holding for the last three months.

The WGC also said that Germany and Russia lowered their gold reserves by 0.5 tonnes.

“Despite the lower level of growth in global official gold reserves in July, year-to-date central banks' net purchases remain comfortably above 200 tonnes,” the WGC in the report.

While the council remains optimistic that central banks will continue to buy gold, they also highlighted a growing trend in the marketplace.

“The number of sellers is now greater than the number of buyers: 8 central banks have reduced their gold reserves (by a tonne or more) compared to 7 who have increased their gold holdings (by a tonne or more),” the analysts said.

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 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.