According to data released by the World Gold Council (WGC) in the wake of the WGC’s third-quarter report, which revealed that central banks bought a record amount of gold, central banks are increasing their gold purchases in the fourth quarter of 2022. The amount of gold held by central banks around the world is at its highest level since 1974, according to statistics.
Central Banks are still buying gold in Q4, with the UAE buying the most gold in October.
A World Gold Council (WGC) report from the first week of November revealed that central banks bought a record amount of gold bullion. Central banks are buying enormous amounts of gold all over the world. According to WGC’s Q3 2022 data, the central banks piled up close to 400 tonnes in Q3, which was the most ever.which was the highest quarter on record in terms of gold buys.
China is thought to have been the unidentified gold buyer during the third quarter, which was also noticed by WGC. Following the Q3 2022 report, new data from the WGC reveals that 31 tonnes of gold were acquired by central banks worldwide in the month of October. The United Arab Emirates (UAE) central bank purchased the most gold in October, adding an additional 9 tonnes to the nation’s stockpile.
According to WGC data, the UAE bought 18 tonnes of gold in 2022. The total amount of gold purchased by central banks worldwide is currently at its highest point in 47 years, or since 1974. Metrics indicate that Uzbekistan added 9 tonnes more of gold to its reserves after acquiring it for seven consecutive months. This year, Uzbekistan has purchased 37 tonnes of gold, which accounts for 60% of all its reserves.
According to data, Kazakhstan acquired three tonnes of the yellow precious metal in October, and the National Bank of Cambodia was able to buy two tonnes in September. In order to diversify their foreign reserve holdings, central banks buy the precious metal gold. In essence, because gold has been regarded as a safe haven asset for millennia, it is thought that the precious metal can lower the overall risk of their reserves.
In the past, major commercial banks or gold mining firms directly supplied the central banks of the world with gold. The price of gold has increased over the past two weeks, and as of Wednesday, one ounce was trading for $1,778. Gold’s value has increased 9.15% since Nov. 3, 2022, from $1,629 per ounce to the current price of $1,778 per ounce on Dec. 7, 2022.