Brisk Q1 buying by Central banks gives record boost to gold reserves
BBN Dubai
Dubai: Central banks worldwide have accelerated gold buying at the start of 2024 amid challenging conditions.
A total of 290 tonnes of gold were purchased around the world between January and March, marking the largest purchase ever made during the first quarter of any year, the World Gold Council reported on Tuesday.
The amount of yellow metal added to central bank reserves represents the “strongest start to any year on record”, indicating that demand will remain robust throughout the year, the report said.
“The voracious buying has continued into 2024 in the face of the renewed gold price rally,” the report said.
“Many have attributed central banks’ ongoing voracious appetite for gold as a key driver of its recent performance in the face of seemingly challenging conditions: namely, higher yields and US dollar strength.”
Top buyers
The biggest buyer for the quarter was Turkey, which brought in an additional 30 tonnes, bringing its total holdings to 570 tonnes.
In the Middle East, the Central Bank of Oman added 4 tonnes, while the Qatar Central Bank expanded its reserves by 2 tonnes.
Also among the top buyers, the People’s Bank of China bought 27 tonnes during the quarter, lifting its gold reserves to 2,262 tonnes, which is 16% higher than at the end of October 2022, when it resumed reporting monthly purchases.
The Reserve Bank of India expanded its gold reserves by 19 tonnes, exceeding the 16 tonnes purchased last year.
The National Bank of Kazakhstan added 16 tonnes to its reserves, while the Monetary Authority of Singapore and the National Bank of Kyrgyz Republic also purchased 2 tonnes each.
In Europe, the notable buyers include Czech National Bank and the National Bank of Poland, acquiring 5 tonnes and 1 tonne, respectively.
