Central banks bought 51 tons of gold in June: WGC
What's the story
Central banks across the globe made their biggest gold purchases of the year in June, according to data from the World Gold Council (WGC). The month saw a total of 51 tons of gold being acquired by these financial institutions. Poland and China were at the forefront of this trend, with other countries like Uzbekistan, Kazakhstan, Jordan, Czech Republic, Ghana and Georgia also making purchases.
Leading buyers
Poland topped the list of gold buyers in June
The National Bank of Poland topped the list of gold buyers in June, adding 19 tons to its reserves.
The People's Bank of China was not far behind with a purchase of 15 tons, marking its 20th consecutive month of buying.
Other countries that bought gold in June included Uzbekistan (9 tons), Kazakhstan (7 tons), Jordan (3 tons), Georgia (1 ton), and Ghana (1 ton).
Market shifts
Turkey sold 2 tons of gold, Russia offloaded 9 tons
Turkey, despite buying two tons of gold in June, also sold a similar amount.
Meanwhile, Russia remained the biggest seller of gold, offloading nine tons.
The first half of this year saw central banks buying a total of 102 tons of gold, with Poland being the top buyer with an accumulation of 82 tons.
Uzbekistan and China followed with a purchase of 41 tons and 40 tons, respectively.
Economic strategies
Gold prices have been on a rise since 2024
Turkey sold and swapped 58-60 tons of gold worth $8 billion to protect its currency, the lira, and foreign exchange reserves.
Gold buying by central banks has been one of the major reasons for the yellow metal to rally continuously since 2024.
However, after the Iran war broke out, it has shed over 25% of its gains due to fears of inflation, rising bond rates, hopes of US Fed increasing interest rates.