Central banks buy 37 tons of gold in July

Demand for gold among central banks surged in July despite the price of the precious metal hitting an all-time high, according to a new report from the World Gold Council.

The report, released Tuesday and compiled using data from the International Monetary Fund and other information, shows that central banks added a net 37 tons of gold to their holdings, the biggest increase since January, when they bought 45 tons.

Poland’s National Bank led the way in July’s purchases, followed by banks in Uzbekistan and India.

“We expect central bank demand for gold to continue in the coming months,” wrote Krishan Gopaul, senior analyst for Europe, the Middle East and Africa at the World Gold Council.

In total, seven central banks increased their gold purchases, while only one reduced its holdings in July.

Poland increased its total gold holdings to 392 tons, or 15% of the country’s total reserves.

“Poland has been on a gold buying spree since April, amassing 33 tonnes over the past four months,” Gopaul wrote.

The Reserve Bank of India continued its monthly buying streak since the start of 2024, adding 43 tonnes. The country, in total, holds 846 tonnes of gold.

The only net seller in July was Kazakhstan, which sold 4 tonnes, reducing the country’s total holdings to 295 tonnes.

The World Gold Council expects central bank buying to remain strong despite the rally. Although the trend of high-volume buying has eased as gold prices hit new highs, demand will persist, Gopaul wrote.

“The long-term trend of net buying remains intact. This reinforces our findings from our latest central bank survey, which highlights several reasons (such as gold’s role as a store of value and its performance in times of crisis) why central banks, despite its high price, are still keen to buy gold.” “Based on these results, we continue to be confident in our expectations that more buying is on the way,” the report said.