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Central banks' demand for gold dipped slightly in July, but continued to be robust, as Qatar and India added to their official reserves, a report by World Gold Council said on Tuesday.
The central banks' rising demand for gold comes amid a scenario of rising inflation and geopolitical uncertainties. Gold has often proved its safe haven status during such times.
Global gold reserves increased by 37 tonnes (net), albeit below June’s 64 tonne increase. Added to the 270 tonnes of net purchases over H1, this pushes central bank demand year-to-date towards the 300 tonne-mark, the report said.
The Qatar Central Bank was the largest buyer, adding 15 tonnes of gold to its official reserves in July.
According to WGC, this addition appears to be the largest monthly increase on record (back to 1967). Its gold reserves now stand at 72 tonnes (10% of total reserves), "the highest on record in tonnage terms.”
The Reserve Bank of India was the other notable buyer, adding over 13 tonnes to its gold reserves lifting total gold reserves to 781 tonnes.
Elsewhere, the Central Bank of Türkiye (Turkey) increased official gold reserves by 12 tonnes in July, taking official gold reserves to 469 tonnes, a two-year high.
Meanwhile, The National Bank of Kazakhstan was the only notable seller according to official reported data. It sold 11 tonnes in July, bringing its year-to-date net sales to just under 30 tonnes.
(Writing by Brinda Darasha; editing by Seban Scaria)
