Central banks' demand for gold continues to rise

According to the latest data from the World Gold Council (WGC), central banks increased global gold reserves by 19 tonnes in February. Although the pace of purchases slowed, gold demand from central banks around the world continues to dominate the market.

Central bank gold demand is expected to remain stable in the first months of 2024, said Krishan Gopaul, senior market analyst at WGC.

Central banks added a total of 64 tonnes of gold in January and February, down more than 43% year-on-year but up fourfold from 2022, according to Mr. Gopaul. Although the pace of purchases slowed in February, the trend of net purchases of this precious metal remained.

The People's Bank of China was the biggest buyer of gold in February, adding 12 tonnes to its reserves, the World Gold Council said, marking the 16th consecutive month of net purchases. Many analysts believe China will continue to buy gold to diversify its reserves away from the US dollar.

The Czech National Bank increased its gold reserves by 2 tonnes in February, extending the country's gold additions to its reserves to 12 consecutive months.

According to the WGC, during this period, the Czech National Bank's purchases totaled nearly 22 tonnes, bringing its gold holdings to 34 tonnes, 183% higher than at the end of February 2023.

The Monetary Authority of Singapore then bought 2 tonnes of gold in its first monthly replenishment since September 2023.

Other major net buyers in February were the National Bank of Kazakhstan and the Reserve Bank of India, which together added 6 tonnes of gold to their reserves in February.

The WGC report shows that there were only two major gold sellers in February. The Central Bank of Uzbekistan sold 12 tonnes of gold in February, while the Central Bank of Jordan's gold reserves decreased by 4 tonnes.

Despite the significant slowdown in central bank gold purchases, analysts say the demand for gold is unlikely to stop anytime soon. Central bank gold purchases have also been a key factor behind the precious metal’s recent record-breaking run above $2,300 an ounce.

Source: https://baolaocai.vn/nhu-cau-vang-cua-cac-ngan-hang-trung-uong-tiep-tuc-tang-post382483.html