World's major central banks make record gold purchases -

London – Increased tension due to global geopolitical activities and signs of economic recession has caused central banks to turn their stance towards gold, which is considered a safe investment now. In the first nine months of 2023, central banks have purchased more than 800 tonnes of gold. According to the information shared by the World Gold Council, China, Poland, Singapore, Libya, and India are among the countries that have purchased the most gold this time.

Moreover, the People’s Bank of China (China), National Bank of Poland (Poland), Central Bank of Libya (Libya), Monetary Authority of Singapore (Singapore) and Reserve Bank of India (India) have purchased a total of more than 500 tonnes of gold from January to September. Apart from this, the World Gold Council shared information about the purchase of gold by the central banks of the Czech Republic, Qatar, Kyrgyzstan, Iraq and the European Central Bank. The council report records that 77 tonnes of gold was purchased in September.

Since 2010, the world’s major central banks have been buying gold in large quantities. Last year, these banks drew attention by purchasing 1,138 tonnes of gold. This purchase was the highest since 1967. The trend of buying gold seems to continue in 2023. In the first two months of the year, these banks had purchased 125 tonnes of gold. Besides, the World Gold Council has shared that China’s Central Bank has bought the highest amount of gold this year, with about 200 tonnes of gold bought between January and September.

Nonetheless, this trend of gold purchases has emerged in the new report of the World Gold Council. In addition, analysts have predicted that the record purchases made in the first nine months of the year will continue even further, breaking last year’s record. Just a few days ago, attention was drawn to the price of gold exceeding two thousand dollars per ounce. Meanwhile, the Council has claimed that due to the gold purchases of the central banks, the price of gold will be more than the level of two thousand dollars per ounce.

Furthermore, the Russia-Ukraine conflict that began in 2022, the turmoil in the Chinese economy, signs of an economic slowdown and the struggle in the Gulf have created an atmosphere of uncertainty at the global level. In such a situation, the US dollar has strengthened due to the policy adopted by the US Federal Reserve. However, despite this, the uncertainty at the international level has not diminished; on the contrary, it seems to be increasing. Additionally, some economic experts seem to warn that the dollar will continue to decline. As a result, the price of gold will rise more in the coming times.

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