Central Banks Boost Gold Reserves Amid Geopolitical Tensions

Central banks worldwide increased their gold reserves by 23 tonnes in July, according to recent data. China and Poland led the purchases, buying a net of 20 and 8 tonnes respectively.

The trend of central banks diversifying their reserves amid geopolitical and inflation risks continues, with notable buying from emerging markets like the Czech National Bank, Kazakhstan, Malaysia, and Bolivia.

However, not all countries are accumulating gold; Russia was the largest seller, offloading 6 tonnes in July. This comes as Poland aims to reach a total of 700 tonnes, having already bought 90 tonnes this year, while China has added 60 tonnes in 2023, marking its 21st consecutive month of buying.

Central banks are exploring new gold allocations; the Bank of Korea recently announced new allocations, and Namibia plans to increase its reserves. Additionally, Venezuela is seeking to repatriate $4 billion worth of gold from the UK as part of post-earthquake recovery efforts.