Central Banks Back to Purchasing Gold in June
The world’s central banks reversed their three-month gold selling spree to make purchases during June. According to international financial statistics issued by the International Monetary Fund (IMF), net gold purchases during June reached 55 tonnes, with six central banks purchasing gold during this period.
- The Central Bank of Turkey added 11 tonnes to its official reserves
- Krishan Gopaul, senior analyst for Europe, Middle East, and Africa (EMEA) at the World Gold Council, qualified Turkey’s activity as “pivotal” for the global total
- Six more banks also purchased gold, with only two selling during June
China Continues Buying Spree
The biggest gold buyer during June was China, with the People’s Bank of China (PBOC) adding 21 tonnes to its reserves. China maintained an eight-month buying spree and has added 103 tonnes during 2023.
- The National Bank of Poland added 14 tonnes to its reserves
- Poland has purchased gold in the last three months, adding 48 tonnes this year
- Uzbekistan, the Czech Republic, Qatar, and India also added to their gold reserves during June
Only two countries sold significant amounts of the precious metal during June: Kazakhstan and Singapore. Kazakhstan sold 3 tonnes during the period, signaling that it might offload more in the rest of the year. The Monetary Authority of Singapore also reduced its reserves by 1 tonne.
Hot Take
Central banks have shifted back to purchasing gold in June, after a three-month selling spree. China remains the biggest gold buyer, adding 21 tonnes to its reserves during the month. The Central Bank of Turkey’s activity was seen as pivotal for global demand, as it added 11 tonnes to its reserves. Other banks, including the National Bank of Poland, also increased their gold reserves. However, Kazakhstan and Singapore were notable sellers during the period. This shift in central bank behavior suggests a continued interest in gold as a safe-haven asset.
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