Krishan Gopaul, senior analyst of the World Gold Council, revealed that central banks kept adding gold to their reserves during November. According to public records and reports from the International Monetary Fund (IMF), central banks added 44t of gold to their coffers, with the Central Bank of Turkey leading the charge by purchasing 25 tonnes.
Central Banks Kept Buying Gold in November
Central banks continued their gold rush during November. According to a report by Krishan Gopaul, an analyst for Europe, Middle East, and Africa (EMEA) of the World Gold Council, central banks continued to add to their gold reserves in November, purchasing a net of 44t of gold.
Gopaul stated that these numbers came from public records and International Monetary Fund reports, reiterating the momentum of gold as a reserve asset, particularly for emerging markets in Asia and Europe. Developed nations have remained relatively quiet in the sales and purchase sides of the equation.
The largest gold purchasers of the month were the Central Bank of Turkey, which purchased 25t of gold, and the National Bank of Poland, which added 19t to its coffers.
The People’s Bank of China, which purchased 12t of gold, ranked third. However, China is the country that purchased the most gold during 2023, adding more than 200 tonnes of gold.
According to Steve Hanke, economist and professor of applied economics at Johns Hopkins University, the accumulation of central banks from countries in developing nations and the large purchases of countries like China have to do with the uncertainty surrounding the field of fiat currencies.
In November, Hanke explained that the rise of gold as a reserve asset was linked to the increasing use of the U.S. dollar as a weapon and the application of sanctions that have moved countries to what he called “de-dollarization mode.”
Nonetheless, the World Gold Council predicted that gold would have a flat performance in a soft landing scenario.
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