Central bank gold demand hits first-quarter record

Demand for gold among central banks notched a first-quarter record high in the three months to the end of March as overall global demand painted an otherwise “mixed picture,” according to the World Gold Council (WGC), Report informs via CNBC.

In the three months to the end of March, central banks added 228 tons to global reserves, the highest rate of purchases seen in a first quarter since the data series began in 2000, though a slower rate than in recent quarters.

The Monetary Authority of Singapore (MAS) was the largest single buyer over the quarter, adding 69 tons of gold to its reserves, which are now 45% higher than at the end of 2022.

The People’s Bank of China (PBoC) added 58 tons over the quarter and now holds 2,068 tons of gold in its reserves, 4% of total reported gold reserves globally. Turkey was again a big buyer, increasing its reserves by 30 tons, while India’s central bank added a modest 7 tons.

“Against the backdrop of turmoil in the banking sector, ongoing geopolitical tensions and a challenging economic environment, gold’s role as a safe haven asset has come to the fore. In this landscape, it is likely that investment demand will grow this year,” WGC said.