Central banks continued to accumulate gold in August, however at a slower pace, reporting net purchases of 8 tonnes – the lowest since March, according to data from the WGC. The National Bank of Poland was the leading buyer in the month, followed by the Central Bank of Turkey and the Reserve Bank of India. Meanwhile, the Central Bank of Kazakhstan reduced its gold holdings by 5 tonnes in August.
Meanwhile, the People’s Bank of China (PBoC) didn’t add gold to its reserves for the fifth straight month in September. Bullion held by the PBoC was unchanged at 72.8 million troy ounces at the end of last month, according to official data. China has seen a slowdown in gold purchases over recent months. China’s central bank ended an 18-month buying spree in May that had driven gold prices to all-time highs, with these record-high prices likely deterring further purchases for now.
In 2023, central banks added 1,037 tonnes of gold – the second-highest annual purchase in history – following a record high of 1,082 tonnes in 2022. Looking ahead, we expect central bank demand to remain strong amid the current economic climate and geopolitical tensions.