Central banks continue to show strong demand for gold in 2023, says the World Gold Council – Economics report
Central banks show continued demand for gold in 2023, according to a recent report from the World Gold Council (WGC), which found that the world’s central banks amassed 31 tons of the precious metal in January. Turkey was the top gold buyer, adding 23 tons to its central bank’s stockpile, while the People’s Bank of China also bought 15 tons of gold.
Central bank gold purchases remain stable despite potential challenges in 2023
At the time of writing, an ounce of fine gold 0.999 is trading at $1,857.50 per unit, up 1.12% over the past day. Gold prices have been falling since January 31, 2023, when the price per ounce reached $1,950 per unit against the US dollar. On March 2, the World Gold Council (WGC) released a report titled “No Dry January for Central Bank Gold Buying” that discusses how the January 2023 records show that the world’s central banks registered the end of 2022 maintained demand.
According to Krishan Gopaul, the report’s author, many purchases came from Turkey, China and Kazakhstan. “In January, central banks added a total of 31 tons net
Central bank purchases and sales accounted for 44 tons in January 2023, with one central bank offsetting its supply by selling 12 tons. The biggest buyer of gold was the Central Bank of Türkiye (Turkey), which bought about 23 tons during the month. According to the country’s records, Turkey now owns 565 tons of gold.
China ranked second, with the People’s Bank of China acquiring 15 tons over the same period, Gopaul detailed. “The National Bank of Kazakhstan added a modest 4 tons to its gold reserves in January, increasing its gold reserves to 356 tons,” explains the WGC author. The report notes that the data is based on International Monetary Fund (IMF) records and some of the data may be revised during the next WGC monthly report.
In addition to Turkey, China and Kazakhstan, the WGC author explains that the European Central Bank (ECB) bought two tons because Croatia joined the euro zone and the country was obliged to transfer its foreign exchange reserves to the ECB. The seller of the January 2023 12-ton gold sale was the Central Bank of Uzbekistan, and the country now holds about 384 tons.
The WGC report concludes that the organization has little doubt that global central banks will continue to buy gold for the remainder of 2023. However, the WGC author emphasizes that gold purchases this year may not match 2022 records. “It is also reasonable to assume that central bank demand in 2023 may struggle to match last year’s levels,” the report said.
What do you think the future holds for central bank gold demand? Will it continue to rise or fall in the coming months and years? Do share your thoughts in the comment section below.
photo credit: Shutterstock, Pixabay, Wiki Commons, World Gold Council, Tradingview
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