Central banks acquire 800 tons of gold in January-September

2023-11-07 08:00:52

(MENAFN) Central banks have acquired 800 tons of gold during the period from January to September this year, marking the highest amount ever recorded for the nine-month duration, according to data from the World Gold Council.

In its report on Gold Demand Trends for the third quarter of the year, the industry association noted that central banks' net purchases of bullion in the initial three-quarters of the year exhibited a 14 percent increase compared to the previous year.

The report further highlighted that global gold demand, excluding over-the-counter (OTC) trading, exceeded its five-year average by 8 percent in the third quarter, but showed a 6 percent decline when compared to the record-high levels of the previous year.

Based on data from the World Gold Council, China has emerged as the largest purchaser of gold this year, continuing its 11-month streak of gold acquisitions. Other significant buyers include Poland, Singapore, Turkey, Russia, and India.

This uptick in gold purchases by emerging economies reflects a global trend wherein central banks are diversifying away from the US dollar as a reserve currency. This shift in trust away from the greenback has been spurred by the global perception of the United States weaponizing its currency for sanctions in response to the Ukraine conflict, including the freezing of billions of dollars in foreign reserves.

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