According to the World Gold Council, the People's Bank of China's gold reserves reached 2,331.52 tonnes by the end of May, marking an increase of 10 tonnes from the previous month. This represents the 19th consecutive month of gold accumulation by the Chinese central bank.
In April, central banks worldwide resumed net purchases of gold, adding a net 19 tonnes for the month. This marks a significant shift from March's trend of substantial net sales, indicating a notable monthly recovery in official sector demand.
The National Bank of Poland was the largest official gold buyer in April. Meanwhile, the People's Bank of China has continued its gold-buying streak for 18 consecutive months.
The gold reserves of the Central Bank of the Republic of Turkey remained largely unchanged in April. Weekly data indicates that its short-term gold/US dollar swap contracts matured in a concentrated manner during April. Currently, only longer-term contracts with maturities of 1-3 months remain outstanding.
Initial Steps for Gold Investment
Eastern European and Asian central banks remain the primary drivers of gold purchases, maintaining a steady pace of accumulation. Over the past 36 months, these two regions have recorded average monthly net purchases of 12 tonnes and 11 tonnes, respectively. In comparison, the global average for central bank net purchases over the same period stands at 29 tonnes per month.
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