The Chinese central bank, PBoC, has reported unchanged Gold reserves of 72.8 million ounces (2,264 tons) at the end of September, according to Commerzbank’s commodity analyst Carsten Fritsch. This marks five consecutive months without any new Gold purchases by the PBoC, after buying 29 tons in the first four months of the year. Despite this, central bank Gold purchases have remained strong due to significant buying from other countries such as India, Turkey, and Poland, totaling 483 tons in the first half of the year according to the World Gold Council.
The lack of major contributions from the PBoC has not hindered central bank purchases as a whole, with other countries stepping up and continuing to buy large amounts of Gold. In fact, it is believed that a considerable amount of these Gold purchases cannot be attributed to any specific central bank. This trend is expected to continue driving Gold demand throughout the year, even without substantial purchases from the PBoC.
Central bank Gold purchases have been a significant factor in driving Gold demand this year, with 483 tons bought in the first half of 2021. Despite the PBoC not making any new Gold purchases in the last five months, other countries like India, Turkey, and Poland have continued to buy large amounts of the precious metal. This strong demand from central banks is expected to continue propelling Gold prices higher in the coming months.
The World Gold Council reported that a total of 225 tons of Gold were purchased by central banks last year, with China being a major contributor. However, with the lack of purchases from the PBoC in recent months, other countries have stepped in to fill the gap and ensure that central bank Gold purchases remain a key driver of demand. This trend is expected to continue throughout the year, supporting Gold prices and demand worldwide.
Despite the Chinese central bank not making any new Gold purchases in recent months, central bank Gold purchases as a whole have remained strong. Other countries such as India, Turkey, and Poland have continued to buy large amounts of Gold, contributing to a total of 483 tons purchased in the first half of the year. The importance of central bank purchases in driving Gold demand has been highlighted, with no slowdown expected in the near future.
In conclusion, while the Chinese central bank has not purchased any new Gold in the last five months, central bank purchases as a whole have continued to drive Gold demand. With strong buying from countries like India, Turkey, and Poland, central banks have managed to offset the lack of purchases from the PBoC. This trend is expected to persist throughout the year, supporting Gold prices and maintaining strong demand for the precious metal.
