Central Banks' Gold Purchases Plummet to 15-Year Low

Central banks' gold purchases have plummeted to their lowest level in over 15 years. According to the World Gold Council, revised data show a drop from an estimated 244 tonnes in Q4 to just 57 tonnes in Q1. This sharp decline suggests that one of the primary drivers of gold demand may be cooling down.

The total gold demand for the first half of the year remains relatively stable, standing at approximately 2522 tonnes - about 2% higher than the same period last year. However, this growth is largely due to other factors rather than central bank activity.

Historically, central banks' purchases have played a significant role in driving up gold prices. With this trend reversing, it's likely that price dynamics will be influenced by the slowdown in demand. Gold prices have already fallen nearly 30% from their January peak, dropping below $4,000 per ounce for the first time since November.