“Yellow fever” wreaks havoc on central banks: purchases of 228 tons in the first quarter of 2023 and the jewels of the Chinese

By | May 7, 2023

HE Monetary Authority of Singapore was the biggest buyer during the first quarter, added 69 tons of gold while respectively Mrs.China’s central bank added 58 tons of gold and now he has 2,068 tons of gold in its reserves, reviewing it 4% of total world reserves

HE demand for gold between central banks come to levels – records in it First trimesteraccording to the World Gold Council.
The price of gold broke the barrier of $2,000 an ounce this week and is flirting with record levels due to global economic uncertainty, a possible pause in interest rate hikes by the Fed and turbulence in the financial system. American banking have drawn investors to the precious metal. according to a Bloomberg report from Saturday, May 6, 2023.
The evidence showed that in the quarter to the end of March, central banks added 228 tons to their global reserves, the highest level of purchases in the first quarter since 2000; when these numbers began to be tracked, although purchases were made at a slower pace than in recent quarters.
Louise Street, an analyst at the World Gold Council, reports that we see a continuation of the trend in which gold purchases by central banks hit an 11-year high in 2022.
The Council, however, expects demand among central banks to moderate this year after picking up in 2022, although Buying activity so far has mainly focused on emerging markets.
HE Monetary Authority of Singapore it was the largest buyer during the first quarter, adding 69 tonnes of gold to its reserves, which are now 45% higher than their late-2022 levels.
Respectively, China’s central bank added 58 tons of gold in the quarter and now has 2,068 tons of gold in its reserves, controlling 4% of global gold reserves.
HE Turkey is a great buyer again, have increased their stocks by 30 tonswhile the central bank of India has increased them by seven tons.
Chinese consumers bought 198 tons of gold jewelry in the quartermarkets they represent 41% of the totalAlthough the high and volatile prices they doubled the demand to Indiawhich experienced its lowest first-quarter demand in three years.

Large jewelry purchases by Chinese citizens

MSGold jewelry consumption in China reached 198 metric tons in the first quarter, increasing by 11% YoY (56% QoQ), marking the highest level for the quarter since 2015, the World Gold Council announced on Friday, May 8.
The WGC attributed the rise to a recovering economy and demand as China eased its COVID-19 control measures.
HE Wang LixinWGC (China) Regional Managing Director, said, “The pent-up demand for gold jewelry used for weddings has improved thanks to the lifting of COVID-19 control measures.
More consumers are also turning tocompared to other jewelers given their perception that it was a safe investment.
Wang said the lawsuitfor products made of hard and pure gold, andto a kind of pure gold products with about lighter weight per piece, saw growth in the first quarter thanks to its increased toughness, sleek designs, and affordability amid rising gold prices.
While gold jewelry is kept as family heirlooms, a kind of pure gold products with local cultural designs and traditional Chinese elements retain a vital market share.
Gold bars and coins

Investment demand in the bullion and coin market also increased in China.
Gold bullion and coin sales totaled 66 tonnes in the first quarter, up 34% yoy (7% qoq).
The WGC said this is the strongest first quarter since 2019 for the sector, mainly due to China’s optimization of COVID-19 measures and gold price performance.
According to the WGC, the price of gold approached average all-time highs for the quarter at $1,890 an ounce.
The board said continued substantial buying by central banks around the world underscored gold’s role in international equity portfolios in times of market volatility and heightened risks.
Central banks helped boost demand by adding 228 tonnes to global reserves, also a first-quarter record, the WGC said.

Driven by growing uncertainty
“With the backdrop of turbulence in the banking sector, ongoing geopolitical tensions and a challenging economic environment, gold’s role as a safe haven has come to the fore.
In this scenario, demand is likely to increase this yearespecially with headwinds from a strong US dollar and central bank interest rate hikes,” he said.said Louise Street, WGC’s senior market analyst.
“HECentral bank purchases are likely to remain strong and will be the cornerstone of demand throughout 2023, albeit at levels lower than the all-time highs seen last year.and,” Street said.
According to the WGC, rising geopolitical tensions around the world and continued gold purchases by global central banks have affected the gold investment decisions of many Chinese investors.
Looking ahead, China may see stronger than usual investment demand for physical gold in the second quarter, which is off-season demand for gold in the country, according to the WGC, which aHe attributed the strong demand to the continued economic recovery and growing consumer interest in safe assets.

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