WGC: Central Banks Bought 374 Tons of Gold, Largest On Record For First Half of A Year EVER (Video)
WGC: Central Banks Bought 374 Tons of Gold, Largest On Record For First Half of A Year EVER Video by Wall St for Main St
TDC Note – Gold: Its what’s for breakfast, lunch and dinner!!
Central banks purchased a record $15.7bn of gold in the first six months of the year in an effort to diversify their reserves away from the US dollar as global trade tensions continue to simmer.
Central banks make record $15.7bn gold purchases https://amp.ft.com/content/b62ebb1a-b…
Data released by the World Gold Council on Thursday showed central banks, led by Poland, China and Russia, bought 374 tonnes of gold — the largest acquisition of the precious metal on record by public institutions in the first half of a year. Central banks accounted for nearly one-sixth of total gold demand in the period.
The pattern advances on last year’s activity in which central banks hoovered up more gold than at any time since the end of the gold standard (where a country could link the value of its currency to the precious metal) in 1971.
Dovish comments from central banks, geopolitical instability and rising gold prices encouraged investors to top up, with ETF gold holdings up 67.2 tonnes in the second quarter to a six-year peak of 2,548 tonnes.
Demand was further supported by a recovery in India’s jewellery market in Q2, with year-on-year demand rising 12 per cent to 168.6 tonnes. However, as the June price rose above $1,400 a troy ounce for the first time in six years, demand for gold in the jewellery and retail investment markets softened.
“June was a big month for gold,” said Alistair Hewitt, head of market intelligence at the WGC. “While the Fed’s dovish turn was the key driver for this, it also builds on a strong first half of the year, which saw gold demand hit a three-year high, underpinned by extremely strong central bank buying.”