Global central banks ramp up gold purchases despite rising prices
(MENAFN) Despite ongoing increases in Gold prices, central banks around the world significantly ramped up their gold purchases in July. Data from the World Gold Council reveals that net purchases by central banks surged to 37 tonnes in July, marking a dramatic 206 percent rise from the previous month and reaching the highest monthly total since January, which saw 45 tonnes purchased. This sharp increase underscores a sustained global commitment to boosting gold reserves amid a volatile economic landscape.
Poland emerged as the leading buyer in July, adding a net 14 tonnes to its gold reserves. This addition represents the largest monthly increase for Poland since November 2023, bringing its total gold holdings to 392 tonnes, which constitutes 15 percent of its overall reserves. Following Poland, Uzbekistan's central bank purchased 10 tonnes of gold, elevating its total reserves to 375 tonnes. The Reserve Bank of India also contributed to the surge, increasing its gold reserves by 5 tonnes in July. This brings its total gold holdings to 846 tonnes, reflecting a robust net purchase of 43 tonnes since the start of the year.
Gold prices have experienced a significant rise, gaining 21 percent since the beginning of the year and peaking at an all-time high of USD2,531.60 per ounce on August 20. The price has since settled at USD2,493.34 per ounce, driven by expectations of a potential U.S. interest rate cut and ongoing geopolitical concerns in the Middle East. As investors await the upcoming U.S. jobs report, which could influence the Federal Reserve's interest rate decisions, central banks continue to solidify their gold positions as a hedge against economic uncertainties.
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