In early August, the World Gold Council reported that central banks' demand for gold in the first half of the year amounted to 387 tonnes. Despite a slight slowdown in the pace of their gold purchases during this period, central banks have not stopped their actions. They see the value in the precious metal and continue to add it to their currency reserves.
This year, the Monetary Authority of Singapore has become a significant buyer of gold. In July, Singapore's central bank announced that it had purchased 2 tonnes of gold in a month, adding up to 73.6 tonnes of the precious metal for the year 2023. According to the World Gold Council, Singapore ranks second in replenishing its gold reserves after China. Since the end of December last year, Singapore's gold reserves have grown by 48%.
According to IMF data, Libya acquired 30 tonnes of gold in June, marking a record level for the country. In July, Qatar increased its official gold reserves by 3 tonnes, and the purchases for the year reached 5 tonnes, bringing the total reserves to 97 tonnes.
George Milling-Stanley of State Street Global Advisors said central banks' demand for gold will provide reliable support to the precious metal. Additionally, a resurgence in consumer demand will lead to an increase in gold prices.