Gold buying by central banks around the world has slowed down, with only a handful of banks boosting their reserves despite a decline in prices during the summer, according to the latest data from the World Gold Council (WGC).
Central banks added a total of 20 tonnes to their reserves in August 2022, halving month-on-month. The largest buyer so far this year, Turkey, acquired another nine tonnes during the month, increasing its total gold purchases to 84 tonnes year-to-date and lifting its official reserves to 478 tonnes, the highest since the second quarter of 2020.
“Gold-related activity among central banks was muted in August,” said Krishan Gopaul, senior analyst for EMEA at the World Gold Council.
“Only a handful of banks meaningfully contributed to the overall monthly total. Three banks published an increase to their gold reserves by a tonne or more, while there were no notable sellers by the same measure in the available data.”
Considered a hedge against inflation and economic uncertainty, the precious metal has lost its shine recently, with prices falling by more than 14% over the last six months. Investors’ appetite for safe-have assets have been curbed despite worries over ongoing geopolitical tensions and soaring inflation.
The yellow metal sunk to over a two-year low to just above $1,627 an ounce on September 25, the lowest since March 2020.