Central Banks Accumulate Gold: How Will the Price Be Affected?


Although the gold price traded with a positive trend for the second day in a row, it lacked follow-through. Positive risk tone caps gains for the shiny metal amid uncertainty over the Fed’s rate hikes. Meanwhile, central banks continue their gold purchases at full speed.

Central bank gold purchases continue

According to World Gold Council EMEA Senior Analyst Krishan Gopaul, September was another bright month for purchases by the world’s central banks. Gopaul makes the following statement in his latest update:

Global central bank gold reserves, reported through the IMF and publicly available sources, increased by a net 77 tonnes in September. Gross sales (1 ton) overshadowed gross purchases (78 tons), highlighting the strength of purchases.

Gopaul notes that central banks, which have been regular buyers so far this year, dominated purchases once again last month. Meanwhile, the analyst notes that the major buyers all come from emerging markets. In this context, “The People’s Bank of China was the bank that bought the most gold during the month (26 tons). It was followed by the Central Bank of Poland and the Central Bank of Uzbekistan.”

CBRT became a net gold buyer again

Meanwhile, Türkiye and India were among the important buyers last month. Turkey continued to increase its reserves after significant sales in April and May. In this regard, Türkiye purchased 15 tons in August. India’s purchases have made a big jump in recent months. Looking at year-to-date totals, Gopaul “remains the People’s Bank of China’s largest buyer of gold in 2023. “In addition, the central banks of emerging market countries are the driving force on both the buying and selling sides,” he says. Additionally, the analyst shares the following information:

The Monetary Authority of Singapore remains the only developed market bank to add gold to its reserves. The addition made by the European Central Bank is related to Croatia joining the Eurozone in January.

WGC’s latest report also reflects the increase in purchases

Year-to-date net buying by central banks is 14% above 2022, according to the WGC’s latest Gold Demand Trends report. The report said, “Central banks have purchased a net 800 tons so far this year. “This is the highest number on record for the nine-month period.” Analysts draw attention to the 337 tons of gold purchased by central banks in the 3rd quarter. They say this was the strongest third quarter in the data series. However, they state that it could not reach the exceptional figure of 459 tons in the 3rd quarter of 2022.

ANZ: Gold’s performance depends on it!

cryptokoin.com As you follow from , gold benefits from its shelter asset status in an environment where geopolitical risks are increasing. ETF flows are picking up amid haven demand, according to ANZ Bank economists. In this context, economists make the following assessment:

Gold benefits from its status as a haven asset in an environment of increasing geopolitical risks. Exchange-traded fund (ETF) assets have increased over the past two weeks. Additionally, speculators closed their short positions. Still, gold’s performance depends on the end of the Fed’s rate hike cycle. In this way, US Treasury bond yields may fall, helping gold investment demand recover.


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