In February, global central banks sustained their trend of adding to their gold reserves, albeit at a slightly slower pace compared to previous months. The net increase in central bank gold reserves amounted to 19 tons during the month, with some selling activities contributing to this total. This marks the ninth consecutive month of net central bank gold buying.
China emerged as the most significant buyer in February, with the People’s Bank of China increasing its official gold holdings by 12 tons. This extends China’s streak of gold accumulation to 16 consecutive months. It’s worth noting that China’s reported gold holdings stand at 2,257 tons, but there’s speculation that the actual figure might be higher, with additional gold possibly held “off the books” by entities like the State Administration for Foreign Exchange (SAFE).
Additionally, the National Bank of Kazakhstan resumed its gold accumulation efforts, adding 6 tons to its reserves in February. The Reserve Bank of India and Turkey also continued to bolster their gold reserves, albeit at a slower pace compared to previous months.
Notable additions to gold reserves in February were also made by Singapore, the Czech Republic, Qatar, and the Kyrgyz Republic.
However, there were also notable sellers during the month, with Uzbekistan selling 12 tons of gold and the Central Bank of Jordan reducing its gold holdings by 4 tons.
Despite some selling activities, central bank gold buying remains robust, as affirmed by the World Gold Council. The continuation of gold buying is seen as supporting expectations for another solid year of central bank gold demand in 2024.
Analysts anticipate that central bank gold buying will remain significant in the coming years, citing factors such as depleted trust in U.S. fixed-income assets and the rise of non-reserve currencies as potential drivers for continued gold accumulation by central banks.
