Central Banks' Gold Purchases Plummet to 15-Year Low

Central banks have recorded their lowest first-quarter gold net purchases in over 15 years. A recent report by the World Gold Council revealed that initial estimates of 244 tonnes of gold purchased were revised down to a mere 57 tonnes, marking a significant drop.

The revision occurred after some gold previously thought to be flowing into official channels was reclassified as over-the-counter (OTC) transactions. Central banks disclose their gold purchases on a voluntary basis, and the lack of transparency is particularly concerning when it comes to China, which only discloses a portion of its purchases.

The reduced central bank demand has led to a decrease in overall gold purchasing activity in the first half of the year. According to John Reade, market strategist at the WGC, 'official institutions now reveal only a fraction of their transactions,' making it increasingly difficult for analysts to track actual physical flows.