Central bank demand for gold continues to grow, with emerging markets leading the way. For example, the Central Bank of Uzbekistan replenished its gold reserves last month.
On Monday, Krishan Gopaul, senior European and Middle East market analyst at the World Gold Council, said that central bank data shows that the bank bought 8.7 tonnes of gold in July, which corresponds to the amount bought in June.
Market analysts are keeping a close eye on demand for central bank gold as it remains an important pillar of support for the precious metal.
The WGC noted that in the first half of the year, central banks bought 180 tonnes of gold. They expect demand in 2022 to match last year's levels.
Among the purchases of central banks, special attention is paid to emerging market countries.
Many analysts believe that emerging market countries will increase their gold reserves as they reduce their dependence on the US dollar.
Although many currency analysts do not predict that the US dollar will lose its status as a reserve currency anytime soon, the trend towards de-dollarization has gained momentum this year.
Analysts at Societe Generale speak of the most optimistic forecast regarding the demand for gold from central banks. In a report released in June, the French bank said that emerging market countries have a lower gold weight compared to developed countries.
Data from the World Gold Council also confirmed strong demand for gold from central banks. In its June 2022 gold survey, a quarter of respondents said they expected their gold holdings to increase next year.
The report says that 25% of central banks willing to buy belong to emerging markets and developing countries.