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.