Central Banks Stand Firm on Gold Purchases: China Leads with 12 Tonnes in February!

Central banks sustained their demand for gold in February, with net purchases totaling 19 tonnes, although this figure represented a 58% decrease from January's demand, as per data from the IMF and World Gold Council. Notably, China remained the frontrunner in gold accumulation, continuing its streak of purchasing gold for 16 consecutive months, adding 12 tonnes to its reserves.

Despite the decline in monthly purchases, gold retained its allure for central banks. According to Krishan Gopaul, Senior Analyst at the WGC, the slower pace of accumulation had minimal impact on the overarching trend of central bank gold buying, suggesting a continued demand from emerging markets like China and India. Gopaul emphasized that the year commenced positively, affirming the enduring trend of gold purchasing.

China's Gold Reserves: Official Figures vs. Speculation Amidst Dollar Devaluation Concerns

The People's Bank of China (PBOC) emerged as the largest purchaser, augmenting its reserves by 12 tonnes, bringing its official gold holdings to 2,257 tonnes. However, speculation abounds regarding the actual size of China's gold reserves, with some experts, such as Jan Nieuwenhuijs, proposing figures exceeding 5,300 tonnes, possibly in anticipation of U.S. dollar devaluation.

Central Banks Ramp Up Gold Purchases: Reserve Increases by India, Kazakhstan, Turkey, Singapore, and Czech Republic

Additionally, other central banks contributed to the uptick in gold purchases. The Reserve Bank of India and the National Bank of Kazakhstan each acquired 6 tonnes, expanding their reserves to 817 tonnes and 306 tonnes, respectively. The Central Bank of Turkey procured 4 tonnes, while the Monetary Authority of Singapore and the Czech National Bank bolstered their reserves by 2 tonnes each.

Central Bank Gold Reserves: Uzbekistan and Jordan Reduce Holdings Amidst Overall Trend of Acquisition

Conversely, two central banks recorded reductions in their gold holdings during February. The Central Bank of Uzbekistan sold 12 tonnes, while the Central Bank of Jordan reduced its reserves by 4 tonnes. Despite these reductions, the overall trend of central banks acquiring gold remained robust, underlining the enduring appeal and strategic significance of gold reserves in the global economic landscape.