Central Banks Accelerate Gold Buying Amid Softer Prices

Central banks accelerated their gold buying in June, taking advantage of lower prices to add to their reserves. According to the World Gold Council, central banks globally purchased a net 51 tonnes of gold in May, up from 41 tonnes the previous month.

Poland led the world in gold accumulation for the second year in a row, with its National Bank adding another 19 tonnes to its holdings. So far this year, the Polish central bank has expanded its gold reserves by 82 tonnes, bringing its total to 633 tonnes - about 30 percent of its reserves.

China reported an increase in its official gold reserves for 21 straight months and continued to ramp up its accumulation pace. In June, China added 15 tonnes to its official gold reserves, following a 10-tonne purchase in May. Year-to-date, the Chinese Central Bank has officially increased its gold holdings by 40 tonnes.

However, it's worth noting that China is likely holding significantly more gold than it publicly discloses. Data suggests that the People's Bank of China is secretly buying large amounts of gold off the books, with over 5,000 tonnes of monetary gold located in Beijing - more than twice what has been publicly admitted.