Led by China, central banks continued to buy gold in July

In July, central banks, with China spearheading the effort, continued to purchase gold globally, adding a net 23 tonnes, according to the World Gold Council. The leading buyers were China, which bought 20 tonnes, and Poland, which acquired 8 tonnes. The People's Bank of China (PBoC) has also increased its gold purchases recently, buying 60 tonnes so far this year, making up 8% of Beijing's reserves.

Russia, on the other hand, sold 6 tonnes of its gold reserves. Year-to-date, central banks have collectively bought about 130 tonnes of gold, which is less than the 160 tonnes bought in the same period last year. Poland, however, has been the most active year-to-date, having purchased 90 tonnes so far. The Czech National Bank, the National Bank of Kazakhstan, Bank Negara Malaysia, and the Central Bank of Bolivia each bought 1 tonne of gold in July.

Kazakhstan's gold holdings now make up 75% of its total reserves, while Uzbekistan's gold shares 87% of its reserves, making it the highest among Central Asian countries. The recent drop in gold prices to $4,444 an ounce is attributed to geopolitical tensions and inflation concerns.