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November gold purchases point to another strong year of central bank demand – World Gold Council
The world’s central banks continued to drive demand for gold in November, with the lion’s share of purchases once again being made by emerging markets, according to Krishan Gopaul, Senior Analyst, EMEA at the World Gold Council.
“November represented another solid month of gold buying as central banks collectively added a net 53t to global official holdings based on available reported data,” Gopaul said. “This extends the broader trend observed throughout this year where central banks – mostly those from emerging markets – have remained keen buyers of gold, driven by the need for a stable and secure asset amid global economic uncertainties.”
“The gold price dip in November, following the US election, may have provided some central banks with added impetus to accumulate,” he said, adding that much of the buying came from countries who had been active in recent months.
The National Bank of Poland (NBP) was the single biggest buyer, increasing its gold reserves by 21 tonnes in November to a total of 448 tonnes. “Gold now accounts for almost 18% of its total reserves, just below the previously stated target of 20%,” Gopaul noted. “This purchase also cemented the NBP’s position as the leading gold buyer on a y-t-d basis (90t).”
The Central Bank of Uzbekistan increased its gold reserves rose by 9 tonnes during the month, representing the first monthly increase since July, bringing y-t-d net purchases to 11 tonnes and total gold holdings to 382 tonnes.
“The Reserve Bank of India continued its 2024 buying streak, adding a further 8t to its gold reserves in November,” he said. “This lifts y-t-d buying to 73t and total gold holdings to 876t, maintaining its position as the second largest buyer in 2024 after Poland.”
The National Bank of Kazakhstan also added 5 tonnes to its gold reserves in November, making it a net purchaser by one tonne in 2024, with total gold holdings now at 295 tonnes.
“One of the most notable developments during the month was the announcement that the People's Bank of China (PBoC) had resumed gold purchases,” Gopaul noted. “After a six-month hiatus, the PBoC added 5t of gold to its reserves, increasing its y-t-d net purchases to 34t and its total reported gold holdings to 2,264t (5% of total reserves).”
The Central Bank of Jordan bought 4 tonnes in November, with year-to-date net purchases now totaling nearly 2 tonnes and total gold holdings at 73 tonnes.
The Central Bank of Turkey increased its gold reserves by 3t during the month,” Gopaul said. “The central bank also entered into reverse swap agreements (gold for lira) with domestic commercial banks to manage liquidity.”
The Czech National Bank purchased nearly 2 tonnes of gold in November as it marked the 21st consecutive month of buying. “Y-t-d net purchases now total almost 20t, lifting gold holdings to just above 50t,” he said.
The Bank of Ghana also added 1 tonne to its reserves in November, with y-t-d net purchases now totaling nearly 10 tonnes and total gold holdings at 29 tonnes. “The bank also launched a Ghana Gold Coin to the public during the month as part of its ‘efforts to stabilise the economy and promote investment in Ghana’s gold reserves’,” Gopaul noted.
The Monetary Authority of Singapore was the largest seller of gold in November, reducing its reserves by 5 tonnes and bringing y-t-d net sales to 7 tonnes. MAS gold holdings now stand at 223 tonnes.
“It was also announced in December that gold reserves at the Bank of Finland had been lowered by 10% to 44t – the sale most likely taking place during that month,” he wrote. “This brings the bank’s gold reserves to their lowest level since December 1984.”
“Although we await the remaining 2024 data, the broad sustained interest in gold from central banks this year has clearly highlighted the metal’s enduring appeal,” Gopaul concluded. “With only December data yet to be revealed, central banks will no doubt be substantial net purchasers for the 15th consecutive year. A performance fully deserving of a curtain call.”
Source: https://www.kitco.com/