Centrals banks are buying gold
- 2 months ago
Central banks bought ~$5.8B worth of gold during Q3 in their biggest buying spree since 2015, the World Gold Council reports.
Led by Russia, Kazakhstan and Turkey, central banks bought 148 metric tons of gold in the quarter, up 22% Y/Y, according to the report.
"Gold is a good hedge against the U.S. dollar" as central banks seek to diversify their reserves, says Alistair Hewitt, head of market intelligence at the WGC.
“We’re now seeing a whole raft of new buyers,” Hewitt tells Financial Times, noting central banks of India, Hungary and Poland have bought gold recently.
The central bank purchases were in contrast to the first outflows from gold-backed ETFs since Q4 2016, as investors sold a total of 116 metric tons, worth ~$4.5B, during the period, WGC says.
Source : WGC