October’s total doubled above the 12-month average with the Reserve Bank of India leading both year-to-date purchases and those reported during the month.
India added 27 tons in October, bringing its total purchases of gold to 77 tons year-to-date. India’s net purchases year-to-date represent a five-fold increase over its activity in 2023.
Emerging market central banks continue to dominate the market, with Turkey and Poland adding 72 tons and 69 tons so far to their gold reserves, respectively. These three central banks alone account for 60% of total global net purchases reported this year.
With the exception of India, several central banks reported net increases (tons or more) in their gold reserves in October.
The Central Bank of the Republic of Türkiye added 17 tons, making October the 17th consecutive month of net purchases and the highest monthly figure ever reported since December 2023.
The October numbers exceeded the quarterly totals for the second quarter and third quarter. On a year-to-date basis, Türkiye has added 72 tons, representing about 34% of its total reserves
The Polish National Bank recorded net purchases of 8 tons during the month, the seventh consecutive month of net purchasing and on a year-to-date basis, Poland has added 69 tons, representing 17% of its total reserves.
The Polish National Bank’s annual report2 highlights its commitment to accumulating gold, with the central bank targeting to allocate 20% as a percentage of total official reserve assets.
The National Bank of Kazakhstan added 5 tons of gold to its reserves after five months of net selling. However, Kazakhstan remains a net seller year to date, down 4 tonnes in 2024.
The Czech National Bank added 2 tons of gold, making October the 20th consecutive month of net buying. The Central Bank of Kenya collected 37 tons of gold during this period, bringing its total gold reserves to 49 tons.
Kyrgyzstan has added two tons of gold to its reserves, bringing its purchases to date to close to 6 tons, making October the highest monthly net purchase on record since September 2023.
Data available from the Bank of Ghana shows that its gold reserves now stand at 28 tons. The country’s gold reserves have increased steadily since May 2023, when they were at less than 9 tons. Ghana added another ton during the month.
Demand by central banks remains strong, with purchasing volume (reported and unreported) reaching 694 tonnes by Q3 2024 – comparable to levels seen in 2022.
While rising gold prices appear to have discouraged some tactical purchases and prompted sales in recent months, the rebound in activity reported in October indicates continued interest by central banks in accumulating gold within their reserve portfolios and this underscores the role that gold plays as a strategic asset for central banks to manage. Risks and diversification of reserves.
