An ounce around $4,100, down more than 25% since its January record. The picture is enough to chill any saver. However, central banks still bought 39 tonnes of gold in August. American rates at 5.35% are dragging down gold and silver. On the other hand, the institutions that make money continue to pile up metal. China alone accounts for more than half of this net balance.
Central banks bought 39 tonnes of gold in August
The reading comes from the World Gold Council, the organization that represents the gold industry. It was released on October 6. The central banks declared 39 tonnes of net purchases in August, that is to say purchases less sales. They declared 23 in July and 51 in June. Since January, the counter has reached 170 tonnes.
Take out the calculator. At current prices, August purchases alone are worth around $5 billion. China comes first with 20 tonnes. Uzbekistan and Poland follow at 8 tonnes each, then Kazakhstan at 7 tonnes. Turkey returns to purchasing 3 tonnes after three months of sales. On the sellers' side, Russia has sold 6 tonnes, or 56 tonnes since the start of the year. Jordan, for its part, dropped 3.
Gold reserves, Beijing continues a 22nd month of purchases
The People's Bank of China has been purchasing continuously for 22 months. It has added 80 tonnes since January and now holds around 2,387 tonnes. The figure is impressive, but it only represents 9% of the country's reserves. For comparison, gold accounts for 90% of Uzbekistan's reserves and 79% of those of Kazakhstan.
However, first place of the year goes to a European country. Poland has purchased 98 tonnes since January and has 648 tonnes, against an official target of 700 tonnes. World Gold Council analyst Marissa Salim signs the note. However, she notes that China is catching up with Poland in the ranking of purchases for the year. More discreet, the Czech Republic has 42 consecutive months of purchases.
The price of gold falls, central banks buy anyway
An ounce touched $4,066 on Wednesday October 7. Its January high was near $5,600. The culprit is known. A ten-year US government bond yields more than 5%, something not seen since 2002. Consequently, a metal that pays no interest loses its charm with investors.
A central bank seeks something other than a return. Gold is no oneâs debt. In addition, kept in its own coffers, it escapes asset freezes such as that of Russian reserves in 2022. For Marissa Salim, the composition of August purchases suggests that these institutions are pursuing long-term objectives. Variations from one month to the next are mainly due to execution and market conditions.
Let's keep a cool head. The pace slows down. In its previous note, published in September, the World Gold Council counted 130 tonnes of purchases declared at the end of July. A year earlier on the same date, the total was around 160 tonnes. He also reported the words of the governor of the central bank of Uzbekistan. This envisages sales âat favorable pricesâ. Another detail to follow from the Netherlands. The country announced on September 2 the transfer of 86 tons from New York and Ottawa to London. Gold is indeed traded more easily there.
