Demand for gold from central banks remains strong despite the recent pullback in prices. According to Goldman Sachs estimates based on trade and flow data, central banks purchased 79 tons of gold in August.
This amount is significantly higher than the 44 tons of purchases calculated for July. The August data also indicates purchases more than four times the pre-2022 monthly average of 17 tons.
CHINA LEADS IN PURCHASES
According to three-month seasonally adjusted data, central bank gold purchases have been running at approximately 85 tons per month. In the Goldman Sachs calculations, China stood out as the largest identifiable buyer with purchases of approximately 25 tons.
This estimate is higher than the approximately 20 tons of purchases reported by the People's Bank of China. Because Goldman Sachs takes into account trade and flow data in addition to official statements, the bank's estimates appear higher than the net purchase data reported by central banks to the World Gold Council.
The data also brought to the agenda changes regarding where central banks hold their gold reserves. According to Goldman Sachs, gold assets held at the New York Fed decreased by 40 tons, while gold assets at the Bank of England increased by 46 tons.
It was also stated that the Dutch Central Bank moved a total of 86 tons of gold from New York and Ottawa to London over a six-month period. It was emphasized that these transfers do not create new gold demand, but rather mean a change in the location where existing reserves are stored.
News Source: 12punto
