Central banks kept up demand for gold in February, registering net purchases of 19 tonnes. Albeit the purchasing trend continued, purchases fell 58% compared to January’s demand, according to IMF and World Gold Council numbers. China reported the largest gold accumulation, acquiring 12 tonnes to maintain a 16-month gold purchasing streak.
Central Banks Kept Purchasing Gold in February; China Continues Gold Run
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Gold Demand Still High in February, 19 Tonnes Purchased by Central Banks
Gold maintains its desirability for central banks. According to numbers provided by the World Gold Council (WGC) and the International Monetary Fund (IMF), central banks continued purchasing gold during February, adding 19 tonnes to their coffers. While the purchasing trend continued, net purchases fell 58% month on month, and the activity in the gold market was limited to the usual buyers and sellers.
Krishan Gopaul, WGC Senior Analyst, stated that this lower pace of accumulation has had “little effect” on the broad central bank buying trend. Gopaul’s statements hint at a persistence of the demand that emergent markets, such as China and India, have perpetuated since months ago. “The year has got off to a healthy start and the broad trend of gold buying remains intact,” he stressed.
The People’s Bank of China (PBOC) was the central bank that purchased the most gold, registering a net income of 12 tonnes. The official Chinese gold reserve numbers reached 2,257 tonnes, continuing a 16-month purchasing streak.
However, there has been speculation about the size of the gold stash that China is amassing. Jan Nieuwenhuijs, an expert in the Chinese gold market, has reported that China could have accumulated over 5,300 tonnes of gold preparing for a possible debasement of the U.S. dollar.
The Reserve Bank of India and the National Bank of Kazakhstan also purchased 6 tonnes, taking its reserves to 817 tonnes for the former, and 306 tonnes for the latter. The Central Bank of Turkey acquired 4 tonnes, while the Monetary Authority of Singapore and the Czech National Bank added 2 tonnes to their respective reserves.
Only two central banks registered net reductions in their gold reserves during February: The Central Bank of Uzbekistan, with sales of 12 tonnes, and the Central Bank of Jordan, with a reduction of 4 tonnes.
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