World central banks gold demand slows by 39% in Q2 ’24
World central banks’ gold demand dropped significantly in the second quarter of 2024, decreasing by 39 per cent to 183 tons compared to the previous quarter. This also represents a six per cent increase from 173.6 tons in the same period last year.
However, it’s important to note that this level of buying is still robust, surpassing the five-year quarterly average of 179 tons.
The first half witnessed record-breaking central bank gold accumulation, with net purchases totaling 483 tons, surpassing the previous record of 460 tons set in the first half of 2023.
India
India’s central bank, the Reserve Bank of India (RBI), extended its gold buying streak into the second quarter, acquiring an additional 19 tons. With this purchase, the RBI’s total gold acquisitions for the year have reached 37 tons, significantly exceeding the 33 tons purchased in 2022.
Turkey
Turkey’s central bank continued its aggressive gold buying spree in the second quarter, adding 15 tons to its reserves. This brings its total gold purchases for the year to a staggering 45 tons, outpacing all other central banks. This stands in stark contrast to the previous year when the bank offloaded 102 tons to ease domestic market pressures. Turkey’s gold reserves now total 585 tons, constituting 34% of its overall reserves.
China
The People’s Bank of China (PBoC) significantly curtailed its gold purchases in the second quarter. After acquiring 2 tons in April, the central bank halted gold buying in May and June. Despite this pause, the PBoC’s overall gold accumulation remains substantial, with a net purchase of 316 tons between November 2022 and April 2024, bringing its total reserves to 2,264 tons. This surge in gold holdings, coupled with the rising gold price, has elevated gold’s share of China’s total reserves to 5 per cent, the highest level since 1996.
Poland
The National Bank of Poland emerged as a major gold buyer in the second quarter, acquiring 19 tons. This marked the central bank’s first gold purchase since the final quarter of the previous year, bringing its total holdings to 377 tons, which now constitutes 13 per cent of its overall reserves. Polish central bank Governor Adam Glapinski reiterated his goal of increasing gold’s share of total reserves to 20 per cent during a press conference in early June.
Other central banks
Other notable gold purchasers in the second quarter included Uzbekistan (7 tons), the Czech Republic (6 tons), Qatar (4 tons), Russia and Iraq (both 3 tons), Jordan and Kyrgyzstan (1 ton each). Singapore was the sole developed economy central bank to increase its gold reserves during the period, adding 4 tons.
Attribution: World Gold Council report
