Despite gold prices reaching new all-time highs, central bank purchases surged to 37 tonnes in July, marking a significant increase and indicating strong future demand, according to Krishan Gopaul, Senior Analyst for EMEA at the World Gold Council (WGC).
In the WGC’s recent update, Gopaul highlighted that central banks have persistently added gold to their reserves over recent months. “Even as gold prices hit record levels, reported demand has remained positive,” Gopaul remarked. “In July, global central banks, based on IMF and publicly available data, net added 37 tonnes of gold to their official reserves. This marks a 206% month-over-month increase and is the highest monthly total since January.”
Regional Highlights
The report detailed that seven central banks increased their gold reserves by at least one tonne in July, while only one bank reduced its holdings. The National Bank of Poland led the purchases, adding 14 tonnes—its largest monthly increase since November 2023. This acquisition raised Poland’s total gold reserves to 392 tonnes, accounting for 15% of its total reserves. Poland’s gold buying has been particularly aggressive, with 33 tonnes added over the past four months.
Following Poland, the Central Bank of Uzbekistan bought 10 tonnes, bringing its total reserves to 375 tonnes. This purchase reversed its earlier position as a net seller for the year, now showing a positive net change of 3 tonnes.
The Reserve Bank of India also increased its gold reserves by 5 tonnes in July, bringing its total holdings to 846 tonnes. This continues a streak of monthly gold purchases throughout 2024.
In addition, the Central Bank of Jordan and the Central Bank of Turkey each bought 4 tonnes. Turkey has now recorded 14 consecutive months of net gold purchases. The Qatar Central Bank and the Czech National Bank each added 2 tonnes to their reserves. The Czech National Bank has maintained a 17-month streak of adding to its gold reserves, accumulating over 31 tonnes during this period.
Notable Sales and Other Developments
The Central Bank of Kazakhstan was the only institution to report a reduction in gold reserves, decreasing its holdings by 4 tonnes to 295 tonnes, or 55% of its total reserves.
Additionally, the State Oil Fund of Azerbaijan (SOFAZ) saw a notable increase, with its gold holdings rising by 10 tonnes between April and June. This marked the largest quarterly increase since Q2 2019, bringing its total gold reserves to 114.9 tonnes.
Gopaul emphasized that despite the high gold prices, central banks continue to see value in gold, driven by its role as a store of value and its performance during crises. “The persistent trend of sovereign gold accumulation highlights the ongoing confidence in gold’s role in investment portfolios,” he concluded. “We remain confident that this trend will continue as central banks continue to prioritize gold as a key asset in their reserves.”
