Central banks buy more Gold in June – ING

FXStreet Insights Team FXStreet

Central banks added a net 22 tonnes of Gold to global reserves in June, according to the World Gold Council. The Central Bank of Uzbekistan was the leading buyer with net purchases of 9 tonnes, breaking a four month selling streak, ING's commodity experts Ewa Manthey and Warren Patterson note.

Central banks are likely to continue adding Gold to their reserves

"In the second quarter, central banks added 166 tonnes to global official Gold reserves. The National Bank of Poland was the largest buyer of Gold, adding 19 tonnes to its reserves. This was lower than its first-quarter buying of 49 tonnes. Polish official Gold holdings now total 515 tonnes, or 22% of total reserves."

"However, Q2 buying was 33% lower quarter on quarter. This marks the second consecutive quarter during which demand has slowed, with Gold’s 30% price rally this year likely contributing to the move. Despite the slowdown, central banks are likely to continue adding Gold to their reserves given the still-uncertain economic environment and the drive to diversify away from the US dollar."

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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