One kilo of gold bars are pictured at the plant of gold and silver refiner and bar maker Argor-Heraeus in Mendrisio, Switzerland
• According to estimates, in the September quarter, central banks around the world bought 400 tonnes of gold.
Globally, gold demand has returned to pre-Covid levels due to strong consumer and central bank buying. According to the World Gold Council, gold demand was up 28% year-on-year at 1,181 tonnes in the September quarter and, on a year-on-year basis, grew by 18% over the same period in 2021, from pre-pandemic levels. But returned. latest report.
A large chunk of demand comes from central banks around the world, with quarterly record purchases of around 400 tonnes. Turkey, Uzbekistan and Qatar were among the biggest buyers during the quarter. The World Gold Council says it takes year-on-year net purchases to 673 tonnes, surpassing all annual totals since 1967.
“Global central bank purchases reached around 400 tonnes in Q3 (September quarter). This is our largest single quarter of demand from the region in our 2000 record and almost double the previous record of 241 tonnes in the third quarter of 2018. It also marked the eighth consecutive quarter of net purchases and raised the total year-over-year. 673 tonnes, more than in any other full year since 1967," the global gold body said.
The estimated purchase of 400 tonnes by central banks is "a combination of stable reported purchases by central banks and a sufficient estimate for unreported purchases".
According to the World Gold Council, "This is not unusual as not all official institutions publicly report their gold holdings or may do so with gaps. It is also worth noting that Metals Focus suggests Q3 During purchases, it is possible that they may have started earlier in the year. This, in turn, could result in future revisions as more information becomes available."
According to Bloomberg, not all countries, including major countries such as China and Russia, regularly report their gold purchases.
Turkey's central bank remained the biggest gold buyer this year. It added 31 tonnes in Q3, raising its gold reserves to 489t (29% of total reserves). Year-on-year it has added 95t to gold reserves.
The Reserve Bank of India also increased its gold reserves. The Indian central bank continued with its long-term gold buying strategy in Q3. According to the World Gold Council, it bought 13 tonnes in July and 4 tonnes in September, increasing its gold reserves to 785 tonnes.
Gold prices are well below March's high of ₹55,000 per 10 grams. Bullion prices have been pressured this year by aggressive US interest rate hikes as the Federal Reserve tackles rising inflation, which has prompted exchange-traded fund investors to sell non-yielding assets. But support has come from other regions, such as retail buyers and central banks in Asia.
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