FX.co ★ Kazakhstan increases its gold reserves

Being the biggest seller of gold in 2022, the National Bank of Kazakhstan (NBK) started the year with an increase in its investment in the precious metal. World Gold Council's senior analyst Krishan Gopol said the bank bought 3.9 tonnes of gold last month, the first increase in its gold reserves since October. The official gold reserves currently stand at 355.6 tonnes.

Gopol noted that Kazakhstan reduced its official gold reserves by 51 tonnes last year, in which more than half - around 29 tonnes - was sold in December.

The Central Bank of Uzbekistan was also a net seller of gold last year, reducing its gold reserves by about 1 tonne. An IMF data said the central bank continued the trend this year, selling 12 tonnes of gold last month.

It is not uncommon for central banks that buy gold from domestic sources to also sell gold. After all, demand has attracted new market focus after the WGC said that global foreign exchange reserves rose by a record 1,136 tonnes last year.

Some analysts say that demand from central banks provides a solid base for the precious metals market as they are expected to continue buying gold until the end of 2023.