On December 11, amid robust global economic activity in Q3, central banks sustained their enthusiasm for gold purchases into November. ZFX Securities noted that despite a pullback in gold prices after reaching record highs in October, central banks remain active in increasing gold reserves to enhance stability and risk resilience.
According to data shared by Krishan Gopaul, EMEA Senior Analyst at the World Gold Council, Poland and Brazil led gold acquisitions in November, highlighting the growing strategic reliance on gold by central banks in smaller economies amid global financial volatility.
Regional differences in gold accumulation strategies were evident. ZFX Securities observed subdued buying in some major markets, with key central banks adding just 1 ton last month. However, this did not alter the broader long-term trend of gold allocation. Poland’s central bank purchased 14 tons in November, raising total holdings to 544 tons—27% of its foreign reserves—underscoring its continued trust in gold as a safe-haven asset. Brazil expanded reserves for the third consecutive month, adding 11 tons in November and 43 tons year-to-date, bringing total reserves to 172 tons, reflecting emerging economies’ commitment to asset diversification.
Central Asian and Eastern European nations also remained active. Uzbekistan’s central bank added 10 tons in November, bringing year-end holdings to 380 tons—just 2 tons below early-year levels—demonstrating its focus on reserve stability. The Czech National Bank increased holdings by 1.6 tons, accumulating 20 tons this year—a nearly 40% rise from January—as smaller central banks actively hedge against financial risks. Kazakhstan’s central bank bought 8 tons, lifting reserves to 333 tons, up 49 tons since January. ZFX Securities noted that this trend confirms gold’s role as a core reserve asset, even at elevated price levels, to mitigate economic volatility.
Globally, the WGC’s Q3 report projects 2023 central bank gold demand between 750–900 tons. While below the ~1,000-ton annual average of the past three years, ZFX Securities emphasized that official purchases still far exceed long-term averages, signaling unchanged confidence in gold’s strategic value. With current prices near $4,200/oz and a 50% surge in 2024—the strongest annual performance since 1979—ZFX Securities believes high prices reinforce gold’s reserve utility and central banks’ asset resilience, ensuring healthy, sustainable demand growth ahead.
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