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Gold November 03, 2020 07:20:39 PM

Central Bank Gold Reserves Dipped in Third Quarter

Paul Ploumis
ScrapMonster Author
The world central banks reduced gold reserves by 12.1 tonnes during Q3 this year.

Central Bank Gold Reserves Dipped in Third Quarter

SEATTLE (Scrap Monster): The world central banks switched to being net sellers of gold in Q3, for the first time in ten years. The banks have been net buyers continuously since the beginning of 2011. However, on a year-to-date basis, they remained net buyers. The above is as per the latest Gold Demand Trends Q3 2020 report published by the World Gold Council (WGC).

The world central banks reduced gold reserves by 12.1 tonnes during Q3 this year. It must be noted that the banks had reported net purchases of 141.9 tonnes during the corresponding third quarter in 2019. Six central banks increased gold reserves by more than a tonne. The major sellers of gold were Turkey and Uzbekistan.

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The net purchases during the initial three quarters of the year totalled 220.6 tonnes, WGC said. The central banks are expected to remain net purchasers in 2020, though at a slower pace when compared with the previous two years. The notable buyers during the quarter were the UAE ((7.4t), India (6.8t), Qatar (6.2t), Kyrgyz Republic (5t), Kazakhstan (4.9t), and Cambodia (1t).

The gross sales during the quarter totalled 78.9 tonnes during the quarter, with two central banks-Turkey and Uzbekistan, accounting for bulk of sales. Turkey reduced its gold reserves by 22.3 tonnes, whereas Uzbekistan’s gold reserves witnessed a dip of 34.9 tonnes. The other notable sellers were Tajikistan (9.2t), Philippines (7.8t), Mongolia (2.4t), and Russia (1.2t).

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