Q3 of the World Gold Council (WGC) Following a report showing central banks buying record amounts of gold, data released by the WGC shows central banks are buying even more gold during the fourth quarter of 2022. I’m here. Global central bank holdings of gold are at their highest level since 1974, according to statistics.
Central banks continued gold purchases in Q4, UAE to buy largest amount of gold bullion in October
In the first week of November, central banks bought a record amount of bullion, according to a World Gold Council (WGC) report. The WGC’s Q3 2022 data show that the central bank accumulated nearly 400 tonnes in the third quarter, a record quarter for gold purchases.
The WGC also noticed the presence of a mysterious gold buyer in Q3, with China suspected of being a covert gold buyer. The WGC’s new statistics, released after its Q3 2022 report, show central banks around the world acquired 31 tonnes of gold during the month of October. The central bank of the United Arab Emirates (UAE) bought the most gold in October, adding another 9 tonnes to the country’s vaults.
WGC data shows the UAE acquired 18 tonnes of gold through 2022. The total amount of gold acquired by central banks around the world is now at its highest level in 47 years, or since 1974. Indicators show that Uzbekistan is stacked. After seven consecutive months of buying precious metals, another nine tons of gold have been added to the reserves. Uzbekistan has purchased 37 tonnes of gold this year, making up 60% of the country’s total reserves.
Data show that the National Bank of Cambodia bought two tons of gold in September and Kazakhstan bought three tons of yellow precious metals in October. Central banks acquire the precious metal gold to diversify their foreign exchange reserves. In essence, gold has been considered a safe-haven asset for thousands of years, so precious metals are thought to be able to reduce the overall risk of reserves.
Central banks traditionally obtain gold from large commercial banks or directly from gold mining companies. Gold has performed well over the past two weeks, with an ounce currently trading at $1,778 on Wednesday. Since November 3, 2022, gold has gained 9.15% against the US dollar, going from $1,629 per ounce to its current $1,778 per ounce on Wednesday, December 7, 2022.
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