If there has been a defining theme for gold throughout 2023, it would undoubtedly be the ongoing love affair between central banks worldwide and gold. The yellow metal has been acquired at a blistering rate month on month, with the latest data confirming that we’re nowhere close to seeing the end of this surge in demand.
Official figures from the World Gold Council show that collectively, central banks purchased 77 tonnes of gold in August. That figure is around 38% up on the previous month’s tally. When June, July and August’s figures are combined, a total of 219 tonnes of gold made its way into central bank vaults overall.
China was again the largest buyer of gold in August, with the People’s Bank adding a healthy 29 tonnes to its vaults through the month. This amount means that it has acquired 217 tonnes since last November, when central bank demand globally kicked into high gear.
Also continuing with an intensive buying spree, the National Bank of Poland purchased 18 tonnes of gold, bringing its total holdings to 314 tonnes. This number is expected to increase further next month, with the Eastern European nation known to be targeting 100 additional tonnes for 2023 overall. It has purchased 88 tonnes in the year to date, so is expected to continue to be a major player in the final quarter.
Elsewhere, Russia was also a net buyer, with three additional tonnes added to its vaults, bringing total holdings to 2,333 tonnes. Singapore, Uzbekistan, India and Czechoslovakia also grew their total holdings in August.
The World Gold Council’s senior analyst, Krishan Gopaul said that the continued purchase activity represents a clear and sustained trend that looks set to be here to stay. Describing the volume of gold acquired in August as sizeable, he said, “This recent buying suggests that we have now firmly moved past the net selling we saw in April and May, which was primarily driven by heavy, non-strategic selling from Turkey. We are therefore confident that the long-term trend of healthy central bank demand remains in place.”
He added, “Suffice to say, central bank buying remains healthy. Even accounting for the net sales earlier in the year, the pace of buying so far this year suggests that we are on course for another strong annual total.”
The advice from analysts is to replicate moves made by central banks when they acquire gold. With this level of demand helping to drive gold prices, you can’t afford to wait. Buy now.
