Gold move by central banks: August purchases accelerated

According to Goldman Sachs data, central banks accelerated their gold purchases by buying 79 tons in August. While China stood out as the largest identifiable buyer with a purchase of 25 tons, the Netherlands Central Bank also transferred 86 tons of gold from New York and Ottawa to London.

The strong demand for gold by central banks continues to support the market despite recent drops in prices. According to Goldman Sachs' estimates based on trade and flow data, central banks bought 79 tons of gold in August. This amount exceeded the 44-ton purchases calculated for July and was more than four times the monthly average before 2022. According to three-month seasonally adjusted data, central banks' gold purchases hovered around 85 tons per month.

In Goldman Sachs' calculations, China stood out as the largest identifiable buyer with a purchase of approximately 25 tons. It was noted that the purchase amount calculated for China was above the approximately 20-ton purchase announced by the country's central bank. Since the bank uses trade and flow data in addition to official statements in its calculations, its estimates are at higher levels than the World Gold Council data.

According to Goldman Sachs data, gold assets held at the New York Fed decreased by 40 tons, while gold assets at the Bank of England increased by 46 tons. It was announced that the Netherlands Central Bank transferred a total of 86 tons of gold from New York and Ottawa to London over a six-month period. It was emphasized that these transfers did not create new gold demand, but meant changing the storage location of existing reserves.