Gold: Central bank buying underpins prices – ING
ING’s Warren Patterson and Ewa Manthey highlight that central banks, led by China and Poland, continued net Gold purchases in July, supporting structural demand despite a slower pace than last year.
Central banks, including those from China and Poland, continued net gold purchases in July, contributing to structural demand for the precious metal, according to ING analysts Warren Patterson and Ewa Manthey. Gold prices surged over 2% following weaker-than-anticipated US employment data and comments from Federal Reserve official Christopher Waller, who indicated openness to maintaining steady interest rates if inflation remains under control.
Central banks added 23 tonnes of gold reserves to their holdings in July, with emerging market central banks being the primary buyers, led by China and Poland. China's central bank extended its purchasing streak to 21 consecutive months, adding 20 tonnes of gold. Despite a slowdown in central bank purchases compared to the previous year, official sector demand remains supportive of the gold market, as emerging economies' efforts to diversify reserves should sustain structural demand, even if purchases moderate from recent highs.
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