The central bank continued to demand gold in February, recording net purchases of 19 tonnes. The International Monetary Fund and World Gold Council said that although buying trends continued, purchases in January were 58% lower than demand. China recorded the largest gold accumulation, receiving 12 tons to continue gold purchases for 16 months.
Gold demand remained strong in February, with the central bank purchasing 19 tons
Gold maintains its will to central banks. Central banks continued to buy gold in February, adding 19 tonnes to their coffers, according to the World Gold Council (WGC) and the International Monetary Fund (IMF). Although the buying trend continued, net purchases fell 58% month-on-month, with gold market activity limited to casual buyers and sellers.
Krishan Gopaul, senior analyst at the World Gold Council, said the decline in funding rates had a "minimal impact" on the central bank's broader purchasing trends. Gopaul's comments point to continued demand from emerging markets such as China and India, which have been supporting demand for months. "The year has started well and overall gold buying trends remain stable," he said.
The People's Bank of China (PBOC) was the central bank that purchased the most gold, recording a net profit of 12 tonnes. China's official gold reserves have reached 2,257 tonnes, continuing its 16th consecutive month of gold purchases.
However, there is speculation about the size of China's gold reserves. Chinese gold market expert Yan Nieuwenhuis said China may have stockpiled more than 5,300 tonnes of gold in case the dollar value falls.
The Reserve Bank of India and the National Bank of Kazakhstan also purchased 6 tonnes, taking the former's reserves to 817 tonnes and the latter to 306 tonnes. Turkey's central bank received four tonnes, while the Monetary Authority of Singapore and the Czech National Bank each added two tonnes to their reserves.
Only two central banks recorded a net decline in gold reserves in February. The Central Bank of Uzbekistan decreased by 12 tons, and the Central Bank of Jordan decreased by 4 tons.