Central Banks Fail to Boost Gold Demand Amid Opaque Purchasing Practices

Central banks worldwide recorded their lowest first-quarter gold net purchases in over 15 years. The World Gold Council (WGC) revised its initial estimate of 244 tonnes to a mere 57 tonnes, according to a report picked up by the Financial Times.

The revision occurred after gold previously thought to be flowing to official channels was reclassified into the over-the-counter category. Central bank disclosures on gold purchases only take place on a voluntary basis, making tracking increasingly opaque, especially when it comes to China, a big buyer that only discloses a portion of its purchases.

The new stat puts purchases at their lowest for a 1Q period in over 15 years, the report said. Purchases picked up in the second quarter to reach 289 tonnes, marking a 5x increase compared to the first quarter, largely on the back of purchases by China and Poland. However, overall central bank demand was at its lowest 6-month stat since 2022.