In January 2024, a trend by world central banks to add gold to their reserves continued, with Turkey and China leading the way again.
According to a recent study published by the World Gold Council (WGC), central banks increased their gold reserves by 39 tons in January. This was more than double the December net purchases of 17 tons, and the eighth consecutive month of net purchases.
Turkey was the biggest gold buyer, increasing its holdings by 12 tons, for a total of 552 tons, just 6% shy of the all-time high of 587 tons reached in February 2023. The People’s Bank of China reserves rose by 10 tons to 2,245 tons, nearly 300 tons higher than at the end of October 2022 when the bank resumed reporting gold purchases. This was the 15th consecutive month of additions to gold reserves in China. Both countries have been regular net buyers of gold throughout 2023.
An analyst at WGC believes that January’s buying supports the outlook of another solid year of central bank gold demand in 2024. Central banks, particularly those in emerging markets, have shown since 2010 that they have a long-term strategy towards gold accumulation.
According to WGC, last year central banks placed great emphasis on gold’s value in crisis response, diversification attributes and store-of-value credentials. In the first few months of 2024, these factors for owning gold remain relevant.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
