Gold Market
China’s central bank bought 650,000 troy ounces of gold in August, its largest monthly addition since late 2023, extending a buying run into its 22nd consecutive month.
De Nederlandsche Bank has shipped 86 tonnes of gold from New York and Ottawa to London, citing geopolitical unrest. France has already emptied its gold from the New York Fed. The moves point to a deeper concern about liquidity in a crisis.
Central banks bought a net 23 tonnes of gold in July, the World Gold Council reported. Year-to-date purchases of 130 tonnes lag last year, with higher prices prompting caution.
Central banks net purchased 23 tonnes of gold in July, led by China (20t) and Poland (8t). Year-to-date purchases total 130 tonnes, lower than 160t a year ago. Russia sold 6t.
Sovereign gold reserves are held by central banks for financial stability; the United States, Germany, and the IMF lead in holdings.
London's vaults store vast quantities of gold owned by central banks, commercial banks, ETFs, and private investors, with the LBMA setting standards.
The US ended dollar-gold convertibility in 1971. Decades later, central banks buy gold at the fastest pace since Bretton Woods. We examine the paradox.
The Washington Agreement on Gold was a coordinated commitment by central banks to limit gold sales, aimed at stabilising the market and preserving the metal's monetary role.
Central bank gold buying is tracked through official reserves reports, surveys, and filings with the IMF and World Gold Council.