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May 12, 2024

Singapore, Qatar continue buying gold, Libya boosts reserves to record levels

(Kitco News) - Central banks may have slowed the pace of their gold purchases, but they have not stopped, and they continue to see value in adding the precious metal to their foreign reserve. The

(Kitco News) - Central banks may have slowed the pace of their gold purchases, but they have not stopped, and they continue to see value in adding the precious metal to their foreign reserve.

The Monetary Authority of Singapore has been a significant gold buyer this year and that trend continued in July. The central bank said that it bought 2 tonnes of gold last month, according to updated reserve data.

So far this year, Singapore’s Monetary Authority has bought 73.6 tonnes of gold. According to the World Gold Council, Singapore has been the second most active gold buyer this year, behind only China.

Kristen Gopaul, market analyst at the WGC, noted that Singapore’s gold holdings have jumped 48% since the end of December last year.

In a roundup of other central bank moves, Gopaul said that IMF data shows that Libya bought 30 tonnes of gold in June.

"Total official gold reserves now stand at 147 tonnes, 26% higher than at the end of 2022 and the highest level on record (back to end 1956)," he said in a social media post.

Tuesday, Gopaul announced that Qatar increased its official gold reserves by 3 tonnes last month.

"This lifts YTD net purchases to nearly 5 tonnes, taking total gold reserves to 97 tonnes," he said.

In a recent interview with Kitco News, George Milling-Stanley, chief gold strategist at State Street Global Advisors, said that central bank gold demand will continue to provide solid support for the gold market.

He added that he expects renewed consumer demand to drive momentum and prices higher.

"I am looking forward to seeing the next quarterly figures after record demand in the first half of the year," he said. "I think gold prices are pretty well set up at elevated levels for us to make a strong move to the upside, when consumer demand starts to pick up."

At the beginning of the month, the World Gold Council said that central bank demand totaled 387 tonnes over the first half of the year, the highest level of gold purchase going back to 2000.

By

For Kitco News