Global Surge in Gold Purchases by Central Banks in November 2024

Central banks across the globe added 53 tonnes of gold to their reserves in November 2024, as per the World Gold Council’s (WGC) latest report. The surge in purchases, primarily led by emerging markets, reflects the continued demand for a stable asset amidst economic uncertainties and fluctuating global markets.

Key Contributors to Global Gold Purchases

The Reserve Bank of India (RBI) has emerged as one of the significant contributors, adding 8 tonnes in November, bringing its year-to-date purchases to 73 tonnes and total holdings to 876 tonnes. India ranked as the second-largest buyer in 2024, following Poland, whose National Bank acquired 21 tonnes in November and 90 tonnes year-to-date, increasing its reserves to 448 tonnes.

Other noteworthy contributors included Uzbekistan, which added 9 tonnes after a purchasing hiatus since July, and Kazakhstan, with its second consecutive month of buying, accumulating 5 tonnes and flipping to a net purchaser position with 295 tonnes. The People’s Bank of China resumed gold purchases after six months, adding 5 tonnes in November to reach a year-to-date total of 34 tonnes.

Regional Trends and Special Initiatives

Central banks in regions like Jordan, Turkiye, Ghana, and the Czech Republic also increased their gold reserves. The Central Bank of Jordan recorded a 4-tonne increase, while Turkiye added 3 tonnes and initiated reverse swap agreements to manage liquidity. The Bank of Ghana continued its domestic gold purchase programme, adding 1 tonne, and launched the Ghana Gold Coin to promote gold-backed investments.

Meanwhile, the Monetary Authority of Singapore stood out as the largest seller, reducing its holdings by 5 tonnes in November, bringing its year-to-date net sales to 7 tonnes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.