Central Banks Pile Into Gold
Central banks and institutions, including sovereign-wealth funds, bought about 1,136 metric tons of gold net of sales in 2022!
Data according to a World Gold Council, that’s the largest volume since 1967 and marks the 13th consecutive year of net purchases.
Tweet on a gold buying spree
Central banks and institutions, including sovereign-wealth funds, bought about 1,136 metric tons of gold net of sales in 2022, according to @WSJ #gold #inflation https://t.co/Yr0YVNEgyf
— The_Journalbiz (@the_journalbiz) January 31, 2023
WSJ on Gold news
Central banks often hold gold to diversify their reserves. Last year, markets were dragged down by geopolitical turmoil and high inflation, which made it more appealing for central banks to add to gold, World Gold Council analysts wrote.
Global foreign exchange reserves at central banks fell last year, after a once-in-a-generation surge in the U.S. dollar propelled them to prop up their own currencies. This could mean they have less room for diversification into gold, making it harder for this pace of buying to extend to 2023, analysts wrote.
“While the volume of gold purchased is almost unprecedented; this is a long-term trend,” Joseph Cavatoni, chief market strategist of North America at the WGC, said. “We don’t expect this buying streak to end, although it might slow down.
