Central Banks Maintain Gold Buying Streak: Which Nation Leads the List

Global Central Banks Extend Gold Buying Streak to 23 Consecutive Months

According to an analysis by The Kobeissi Letter, global central banks continued to add to their gold reserves in February, marking their 23rd consecutive month of purchases. The data shows that central banks bought +19 tonnes of gold in February, following purchases of +6 tonnes in January. This brings the total acquisitions to +25 tonnes so far this year.

Poland Emerges as Largest Buyer

Poland emerged as the largest buyer during the month, with the National Bank of Poland leading the charge. The bank purchased +20 tonnes of gold, bringing its gold reserves to 570 tonnes, which accounts for approximately 31% of its total foreign exchange (FX) holdings.

Uzbekistan and China Also Make Significant Purchases

Uzbekistan also significantly increased its gold holdings, with the Central Bank of Uzbekistan adding +8 tonnes, lifting its gold reserves to 407 tonnes. This represents approximately 88% of the country's total FX holdings. China continued its ongoing accumulation trend, purchasing +1 tonne of gold, marking the 16th consecutive monthly purchase. This brings China's total gold reserves to 2,308 tonnes, which accounts for approximately 10% of its FX total reserves.

Turkey and Russia Reduce Holdings

However, not all central banks increased their gold holdings in February. Turkey and Russia saw the biggest declines, with Turkey selling an estimated +120 tonnes in March to fund FX operations amid the Iran war. Russia reduced its holdings by -6 tonnes.

| Central Bank | February Purchases | January Purchases | Year-to-Date Purchases | | --- | --- | --- | --- | | Poland | +20 tonnes | - | +20 tonnes | | Uzbekistan | +8 tonnes | - | +8 tonnes | | China | +1 tonne | +6 tonnes | +7 tonnes | | Turkey | -8 tonnes | - | -8 tonnes | | Russia | -6 tonnes | - | -6 tonnes |

Overall Demand Remains Firm

Despite these fluctuations, overall demand from central banks remains firm. Central bank gold demand remains strong, with the ongoing accumulation trend indicating a continued interest in gold as a store of value.

Gold Prices Steady Amid Rising Global Uncertainties

Amid rising global uncertainties, gold prices steadied after two sessions of gains. Traders assessed the prospects of a diplomatic resolution to the Iran war, even as sporadic tensions threatened to disrupt a fragile ceasefire. Gold prices declined 0.49% lower at Rs 1.51 lakh, while silver prices dropped 1.59%.