FX.co ★ Central banks continue to increase their gold reserves

Latest data from the International Financial Statistics, published by the International Monetary Fund (IMF), said central banks continued to strengthen their reserves by purchasing gold.

The Central Bank of Turkey, for instance, bought 17 tons in July, adding to the 11 tons bought in June, when the country resumed purchasing the precious metal after active sell-offs from March to May. According to calculations, net sales currently amount to 85 tons, while the total gold reserves hit 457 tons.

The Czech National Bank also added 2 tons to its gold reserves in July, pushing its total net purchases to almost 10 tons, almost half of the total reserves - 21 tons.

But the most significant buyer points to the National Bank of Poland, which increased its gold reserves by 22 tons. Its net purchases reached 71 tons, so the total gold reserves stretched to 299 tons.

China also bought 23 tons of gold in July, pushing its net purchases to around 126 tons. This increases its official reserves to 2,136 tons.

Since China continues to purchase gold, a growing trend towards de-dollarization could be seen worldwide, as more and more countries try to reduce their dependence on the US dollar.

This means that although demand for the metal cooled in recent months, it will continue to provide solid support to prices until the end of the year.