Central Banks’ Gold Purchases Surge Tenfold in April 2024
In an analysis published on June 4, 2024, the World Gold Council reported a dramatic increase in central banks’ gold purchases, which surged tenfold in one month. Central banks bought 33 tonnes of gold in April, up from just 3 tonnes in March.
The Central Bank of Turkey emerged as the largest buyer during this period, adding 8 tonnes to its official reserves. Other central banks also made significant purchases, including those of Kazakhstan, India, Poland, Russia, and the Monetary Authority of Singapore.
While African central banks have historically been less active in the international gold market, recent years have seen some increase their domestic purchases, particularly in gold-producing countries.
Ghana, for instance, launched a program to buy gold from artisanal miners, and Zimbabwe established a system for paying mining royalties in gold bars.
These strategic moves aim to bolster monetary policy by building up substantial gold reserves. Notably, this surge in gold purchases is part of an ongoing trend that began in 2022, when central banks collectively acquired over 1,100 tonnes of gold, a level not seen since 1867.
The significant purchases by central banks have been a driving factor in the recent rise in gold prices. The price of gold has increased from around $2,000 per ounce in December 2023 to over $2,400 per ounce by the end of May 2024.
