World Gold Council, Central Bank Gold Purchase: In October, central banks globally added a net 42 tons to their official gold reserves, showcasing a consistent trend of robust buying. The People’s Bank of China led as the largest buyer, with the Central Bank of Turkey and National Bank of Poland following suit.
Krishan Gopaul, Senior Analyst, EMEA at World Gold Council, foresees a potential breakthrough in central bank gold buying, surpassing the 2022 record. In a recent analysis, Gopaul stated, “Even before October’s net buying, we noted that 2023 was likely to be another colossal year of central bank buying. Having started Q4 positively, this year’s central bank demand looks set to climb even higher.” In 2022, central banks acquired 1,136 tons of gold, and as of Q3 2023, around 800 tons have been purchased.
October witnessed global central banks adding a net 42 tons to their official gold reserves. The People’s Bank of China led the way, followed by the Central Bank of Turkey and the National Bank of Poland. Despite a slowdown in October, the overall trend of robust buying remained intact, capturing the attention of gold investors. Global net purchases totaled 42 tons during the month, marking a 41% decrease from September’s revised total of 72 tons but still 23% above the January-September monthly average of 34 tons.
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Krishan Gopaul highlighted that a few banks globally accounted for the majority of gold acquisitions. The People’s Bank of China reported adding 23 tons to its reserves, marking the twelfth consecutive monthly addition. Despite this significant increase, reported gold reserves still constitute just 4% of the bank’s total international reserves. The Central Bank of Turkey made a noteworthy addition, purchasing 19 tons, bringing its official gold reserves to 498 tonnes. On a year-to-date basis, the central bank remains a net seller (44 tons) due to heavy net sales between March and May.
Other banks with more modest purchases in October included the National Bank of Poland, adding 6 tons, and the Reserve Bank of India (3 tons), the Czech National Bank (2 tons), the National Bank of the Kyrgyz Republic (1 ton), and the Qatar Central Bank (1 ton).
Krishan Gopaul revealed a higher volume of sales in October compared to August and September, driven by the Central Bank of Uzbekistan (11 tonnes) and the National Bank of Kazakhstan (2 tonnes). Both banks frequently shift between net buying and selling, a common practice among banks acquiring gold from domestic sources.
In summary, Krishan Gopaul’s report indicates that 2023 is poised to be another monumental year for central bank gold buying, with a positive outlook for demand as the year progresses.
