Central banks counter economic jitters the golden way

Amala Balakrishner
Amala Balakrishner6/17/2019 07:30 AM GMT+08  • 8 min read
Central banks counter economic jitters the golden way
(June 17): It appears that all that is gold glitters now, with more central banks, exchange-traded funds (ETFs) and consumers buying the precious metal. Gold accumulation by central banks and other institutions rose 68% y-o-y in 1Q2019. Recent data from t
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

(June 17): It appears that all that is gold glitters now, with more central banks, exchange-traded funds (ETFs) and consumers buying the precious metal. Gold accumulation by central banks and other institutions rose 68% y-o-y in 1Q2019. Recent data from the World Gold Council (WGC) shows that central banks’ net purchases of gold totalled 145.5 tonnes for 1Q2019 — the strongest 1Q purchase since 2013, during which 179.1 tonnes were bought.

Among the central banks, Russia led purchases, buying some of 55.4 tonnes in 1Q. This comes on the back of the country’s de-dollarisation drive, as it reduces its US Treasury holdings. China was another large buyer, purchasing 33 tonnes. The world’s second-largest economy had only resumed gold purchases last December, after a 25-month pause.

Other central banks also made significant additions to their gold reserves in the quarter. Ecuador boosted its gold holdings by 10.6 tonnes, making its purchase for the first time since 2014. Turkey also continued its gold accumulation with a purchase of 40.1 tonnes, while India bought some 8.4 tonnes after a nine-year hiatus.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now