Central Bank's interest grows: It bought tons of gold

The World Gold Council has published its "Gold Demand Trends" report. According to the report, strong buying by central banks and private investors from Asia pushed gold demand in the first quarter to its highest level since 2016.

Global gold demand increased by 3 percent in the first quarter compared to the same quarter of 2023, reaching 1,238.3 tons. Jewelry demand in the first quarter fell by 2 percent to approximately 479 tons.

While there was an increase in gold purchases for investment purposes (coins and gold bars) during the January-March period of the year, investment-grade gold purchases (excluding over-the-counter markets) also increased by 3 percent compared to the January-March period of last year, reaching 312 tons.

DEMAND IS NO LONGER AS HIGH IN TURKEY

According to the World Gold Council report, central bank gold purchases rose by 1 percent in the first quarter compared to the same period in 2023, reaching 290 tons. This marked the strongest start to a year for central bank gold buying on record.

On the other hand, Turkey's demand for gold for investment purposes (coins and gold bars) decreased by 12 percent in the first quarter compared to the same period of the previous year, falling to approximately 44 tons.

The country's demand for gold as jewelry, however, increased by 19 percent in the first quarter compared to the same quarter of 2023, reaching 11 tons. This was recorded as the strongest first quarter for jewelry demand in the country since 2015.

According to the report, the Central Bank of the Republic of Turkey (TCMB) purchased an additional 30 tons throughout the first quarter, bringing its gold reserves to 570 tons.

Meanwhile, according to the London Bullion Market Association (LBMA), the price of an ounce of gold rose to an average of 2,070 dollars in the first quarter due to the effect of rapid increases. There was a 10 percent increase in the ounce price of gold compared to the same quarter of last year.