Central Banks Bought Far Less Gold Than Thought at Start of Year

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Or sign-in if you have an account.kk}2rcqjp{}j611h8bc1s547_media_dl_1.png Metals Focus, World Gold Council(Bloomberg) — Central banks bought far less gold at the start of the year than previously thought, and while demand has since rebounded, their purchases are expected to decline this year, according to the World Gold Council.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountCentral banks only bought 57 tons in the first quarter, 187 tons less than previously thought, the industry group said in a report Thursday. That’s the weakest start to a year in well over a decade, according to WGC data, and the revision means the overall pace of purchasing this year is likely to fall below 2025.The original estimate had reassured bulls that the institutions — a key driver of bullion’s multiyear rally — were returning to the market in force to buy after prices dropped from an all-time high. The metal has lost about a quarter of its value since the Iran war began in late February, as higher energy costs stoked inflation concerns and pushed back expectations for interest-rate cuts.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againA large share of the central-bank buying captured in the WGC’s estimates isn’t disclosed by monetary authorities themselves. Consultancy Metals Focus Ltd. calculates the estimated purchases on behalf of the council using a combination of public data, trade statistics and field research.Central-bank demand nevertheless recovered sharply between April and June, totaling a net 289 tons, a record amount for a second quarter. Poland was the top buyer with 51 tons, which took its first-half purchases to 82 tons. China bought 33 tons in the quarter.After slumping from a record set in January amid concerns about tighter monetary policy, gold has found support near $4,000 an ounce since late June, with investors buying on dips around that level. Higher borrowing costs are typically a headwind for non-yielding gold.Other highlights of the WGC’s quarterly report:Gold-backed exchange-traded funds saw outflows of 45 tons in the second quarter.Bar and coin demand fell about 3% year-on-year to 307 tons.Jewelry demand slipped 17% to 278 tons, the lowest since the pandemic.Recycled supply dropped 6% to 326 tons.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.