Central Banks Buy Record Gold Amid Diversification Efforts

Central banks around the world have made significant gold purchases in recent months. According to data from the World Gold Council, central banks bought a record 289 tonnes of gold between April and June this year, worth $47.38 billion. This marks an increase in buying activity every quarter since 2022.

The US dollar is no longer the dominant asset in reserves as central banks diversify their portfolios by accumulating gold.

Poland led the charge, adding 51 tonnes of gold to its reserves in the second quarter, followed closely by China with 33 tonnes. In comparison, the first quarter saw a smaller accumulation of 345 tonnes due to a price correction that created a buying window for central banks.

The World Gold Council noted that 'central banks made significant gold purchases in Q2 (289t). After a notable Q1 slowdown following a downward revision to our data, buying among this cohort recovered sharply to the lofty levels that have been typical in the last four years.'