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Gold purchases by central banks were strong in April despite high prices, World Gold Council says
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Gold purchases by central banks were strong in April despite high prices, World Gold Council says
Jun 4, 2024 9:03 AM

LONDON, June 4 (Reuters) - Net purchases of gold by

global central banks rose to 33 metric tons in April from a

revised net buying of 3 tons in March, the World Gold Council

(WGC) said, signalling continuing strong appetite from the

sector despite high prices for the metal.

Safe-haven demand, driven by geopolitical and economic

uncertainty, as well as persistent central bank buying

contributed to a rally in gold in March-May. The spot price

hit a record high of $2,449.89 per ounce on May 20.

"The rapid rise in the gold price during March raised

several questions. One of these was whether central banks -

whose demand has been posited as a key reason for the recent

rally - would change their gold buying behaviour in response,"

WGC said in a research note on Tuesday.

"The preliminary pick-up in net purchases in April may

suggest that central banks have thus far shaken off the rally in

the gold price and continue with their strategic buying plans,"

it added.

Demand from global central banks for gold has been elevated

for two years as they diversify their foreign currency reserves.

A survey showed on Tuesday that central banks plan to continue

to increase their exposure to gold.

In April, gross gold purchases by central banks dipped to 36

tons from 39 tons in March, but gross sales saw a drop to 3 tons

in April from 36 tons in March, the WGC said.

It revised the March net purchases to 3 tons after the

central bank of the Philippines reported a sale of 12 tons.

Central banks of Turkey, China, India and Kazakhstan are the

largest net buyers of gold so far this year, according to the

WGC.

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