World Central Banks in April, according to preliminary estimates of the World Gold Council (WGC), increased the volume of gold in their gold reserves by 12 tonnes.
This is less than the average monthly volume of purchases over the past year (28 tonnes), notes WGC analyst Krishan Gopaul. The slowdown in purchases may be a response to the rapid rise in the gold price since the beginning of the year. Although even this rally is unlikely to keep central banks from buying gold, as they tend to be more strategic, says the analyst.
The most active buyers remain central banks of developing countries. Poland is the leader in terms of purchases (added 12.4 tonnes in April). Then with a large gap go the Czech Republic (2.5 tonnes), Kyrgyzstan (2.3 tonnes), China (2.2 tonnes), Turkey (2.1 tonnes), Kazakhstan (0.9 tonnes), Jordan (0.7 tonnes) and others.
The largest seller of gold in April was Uzbekistan (reduced its reserves by 11.2 tonnes).
Since the beginning of the year, gold purchases by central banks remain common, Gopaul notes, but are limited to emerging markets and dominated by the National Bank of Poland. Sales are less common, but also dominated by one bank, the Central Bank of Uzbekistan.