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Global central banks are buying gold! China regained the title of "largest buyer"
Nov 07,2023
On October 31, the World Gold Council released its third-quarter Global Gold Demand Trends report.The report shows that global central banks continue to buy gold strongly, providing a boost to gold demand.
Among them, the third quarter of the global central bank net purchase of gold.337 tons, the third highest quarterly net purchase ever. China is once againThe world's largest gold buyer.
Geopolitical Tensions Heighten Gold Fever
Recently, according to the World Gold Council.According to the Global Gold Demand Trends Report for the third quarter of 2023,With market turmoil and geopolitical uncertainty driving demand for gold, central banks around the world have maintained a strong buying trend to help gold demand.
Data show that the third quarter of the global central bank net purchase of gold337 tons, down from a record 458.8 tons in the same period last year.
But...Since the beginning of 2023, the central bank's net gold purchases have reached 800 tons, setting the latest record since the association's statistics.
In response, Joe, Americas market strategist at the World Gold Council.· Cavatoni stated:"In the current macroeconomic and volatile geopolitical context, gold's return characteristics, liquidity and security have attracted central banks to buy."
Cavatoni points out that the main reason central banks hold gold is"Gold is a hedge against inflation, can improve reserve diversification, and performs better in times of crisis".
These factors"It provides support for the 13-year central bank net buying trend, which will continue at a record pace in 2023."
At the same time he said:"If factors such as the current economic situation and the volatile geopolitical background continue to exist, we expect central bank purchases to remain strong."
In addition, the current Israeli-Palestinian conflict has intensified, pushing up the price of gold. Investors are becoming more risk averse and are accelerating the shift to gold, etc."Safe Assets".
FromSince the outbreak of the Israeli-Palestinian conflict on October 7, gold prices have risen by about 8%.Economists believe that in the short term, the demand for safe haven is still supported, and the price of gold is expected to remain strong.
However, it is worth noting that the impact of geopolitical conflicts on gold prices is mainly short-term, and gold prices may fall after risk aversion cools.
Global central banks set off"Gold rush" tide
According to the World Gold Council report,In the first three quarters of 2023, global central bank demand for gold increased by 14% year-on-year to a record 800 tons.
Net central bank purchases in the third quarter337 tons, the third highest quarterly net purchase ever.
In terms of global gold investment, demand in the third quarter was157 tons, up 56% year-on-year, but still weak compared with the five-year average.The decline in demand in Europe affected total global investment demand for gold bars and coins in the third quarter.
In terms of total supply, the total global gold supply in the third quarter reached1267 tons, up 6% year-on-year; gold mine output reached 2744 tons year-to-date, a record year-on-year high.
The continued high gold price has also led to the total amount of gold recovered.289 tons, up 8% year on year.
In addition, the data also showed that gold demand (excluding over-the-counter trading) in the third quarter was1147 tons, 8% higher than the five-year average.Gold investment demand in the third quarter was157 tons, up 56% year-on-year, but still weak compared with the five-year average.
Senior Analyst at the World Gold CouncilKrishan Gopaul指出，The latest gold buying trend shows that the long-term trend of global central bank demand for gold still exists.
"Even taking into account the net sales earlier in the year, the pace of purchases during the year suggests that we are heading for another strong annual total."
At the same time, gold over-the-counter investment is also continuing to strengthen, the third quarter over-the-counter investment reached.120 tons, partly due to the growth of demand from high net worth groups in Turkey and inventory replenishment in other markets.
China regainsThe title of "largest buyer"
Last monthOn the 7th, data released by the State Administration of Foreign Exchange showed that as of the end of September 2023,The scale of China's foreign exchange reserves is3115.1 billion, down $45 billion, or 1.42 percent, from the end of August.
Among them, ChinaAt the end of September, gold reserves were reported at 70.46 million ounces (about 2191.55 tons), an increase of 840000 ounces (about 26.12 tons) from the previous month, which has risen for the eleventh consecutive month.
Gold reserves were worth $131.788 billion at the end of September and $135.224 billion at the end of August.
In this regard, the State Administration of Foreign Exchange pointed out that,In September 2023,Affected by the monetary policies and expectations of major economies, macroeconomic data and other factors, the US dollar index rose and global financial asset prices fell overall.
The combined effect of exchange rate translation and changes in asset prices decreased the size of foreign exchange reserves during the month.China's overall economic recovery is good, high-quality development solid progress, conducive to the scale of foreign exchange reserves to continue to maintain basic stability.
Among them, China's central bank continued to increase its gold holdings, causing market concern.
double diskAccording to data from November 2022, the Central Bank of China's gold reserves have grown for the eleventh consecutive month, with a cumulative increase of 7.82 million ounces.
At the latest price of international gold (1847 USD/oz), the cumulative increase in holdings amounted to US $14.44 billion (about RMB 105.4 billion).
At the same time, according to the World Gold Council report, China's central bank increased in the third quarter.78 metric tons of gold reserves, regaining the title of "the world's largest gold buyer.
China's central bank's gold reserves have increased since the beginning of the year181 metric tons, reaching 2192 metric tons.
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