Gold Buying Once Again on the Agenda for Central Banks

9.29.22 - A Hard Landing Scenario is Inevitable

Gold last traded at $1,658 an ounce. Silver at $18.71 an ounce.

News Summary: Gold prices eased back Thursday as Treasury yields rose. Stocks saw sharp losses with the Dow now back in bear market territory as a decline in Apple shares weighed on the major averages.

International Banker--"According to the latest figures from the World Gold Council (WGC), central banks stepped up their purchases of gold in May, marking the second consecutive month of clearly bullish sentiment for the yellow metal, thus adding to the long-term trend of central banks' growing appetite for gold.

Having added a net 19.4 metric tons (t) of gold to their reserves in April, central banks added a further 35t in May, with the same banks largely responsible for the main additions during both months-Turkey (13.3t), Uzbekistan (9t), Kazakhstan (6.3t) and India (3.8t). Qatar also added 4.7t of gold to its reserves in May to replenish all of the gold it had sold earlier in the year, the WGC noted, while Germany was the only major country to be a net seller in the month, shedding its gold reserves by 2t.

All this means that 2022 is shaping up to be a year for considerable gold acquisition by many countries worldwide, particularly emerging markets....

As such, recent gold-buying activity extends a multi-year trend of central banks adding to their gold reserves. Last year saw them buy a net 463t, 82 percent more than they acquired in 2020 and the 12th year in a row in which they were net buyers. The WGC reported earlier in the year that central banks hold more than 35,000t of gold, equivalent to around one-fifth of all the gold that has ever been mined, further underlining their insatiable appetite for the yellow metal."