Central Banks are ‘bullish’ on Gold!
Central banks are buying gold at a record pace, taking advantage of lower prices to diversify their foreign-exchange reserves.
Central banks and institutions including sovereign-wealth funds bought almost 400 metric tons of gold net of sales in the third quarter, according to the World Gold Council.
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Central banks and institutions including sovereign-wealth funds
buying gold at a record pace, taking advantage of lower prices to diversify their foreign-exchange reserves,according to the World Gold Council.#gold #Inflation pic.twitter.com/XGC82uG5LE— The_Journalbiz (@the_journalbiz) November 1, 2022
WGC chart on gold reserves
That’s the largest volume on data going back to 2000 and almost double the previous quarterly record. The group has bought 673 metric tons in 2022, higher than any full-year total since 1967.
Turkey, Uzbekistan and Qatar were among the biggest reported buyers in the third quarter. Undisclosed central banks bought a large chunk of gold, WGC said, without specifying the amount.
- Emerging-market central banks, including Russia and China have for years bought gold so their reserves depended less on dollars.
The West imposed sanctions on Russia’s FX reserves after the Ukraine invasion, showing how the U.S. is able to weaponize holdings of dollars by overseas central banks.
Tai Wong, senior precious-metals trader at Heraeus, said central banks had gone on a buying spree when rising U.S. rates knocked gold prices.
