The volume of gold in the gold and currency reserves of the world’s central banks increased by 12 tons
The world’s central banks significantly increased their gold reserves in June, adding a total of 12 tons, the World Gold Council (WGC) reported. published on the organization’s website.
Although demand for gold eased during the month, gross purchases still totaled 31 tonnes and gross sales reached 18 tonnes.
In particular, the Central Bank of Uzbekistan and the Reserve Bank of India increased their gold reserves by 9 tons each during June. This indicates the strategy of diversification of assets of these countries, which helps them to reduce their dependence on other currency reserves and maintain the stability of their economies.
On the other hand, the biggest seller of gold in June was the Monetary Authority of Singapore, which reduced its gold reserves by 12 tons. Such a move could be part of a reserve management strategy or a response to internal financial needs.
The second quarter of 2024 turned out to be a record for gold. According to the WGC, the LBMA (PM) average metal price was $2,338 per ounce, up 18% from the same period last year and up 13% from the first quarter of this year. In May, the gold price reached a new historical high of $2,427 per ounce. This increase in the value of gold is due to a number of factors, including geopolitical instability, inflationary expectations and changes in the global economy.
Gold is traditionally considered a safe asset during periods of economic and political instability. Given the current geopolitical situation and economic challenges, many countries are looking to increase their gold reserves as a means of hedging against risks. In particular, emerging markets face problems of inflation and currency volatility, which incentivizes them to buy gold.
Overall, the global gold market continues to show a high level of activity. Despite a certain decrease in demand during the month, the general tendency to increase gold reserves among central banks remains stable. This indicates long-term confidence in gold as a strategic asset.
We will remind, according to the World Gold Council (WGC), the second quarter of 2024 became a record for this precious metal. The average gold price, according to LBMA (PM), was $2,338 per ounce, up 18% year-on-year and up 13% from the first quarter of this year. In May, gold reached a new all-time high, rising to $2,427 per ounce.
