Central banks worldwide purchased 39 tons of gold in September, according to the World Gold Council (WGC). This is a record figure for the year.
September volumes were 79% higher than the previous month and above the average annual figure by about 27 tons. The WGC believes that the increase in demand for gold despite record prices "is evidence that central banks continue to strategically accumulate gold."
The largest buyer of gold was the Central Bank of Brazil, which replenished its reserves for the first time this year — by 15 tons. The national banks of Kazakhstan and Guatemala purchased 8 and 6 tons of gold, respectively. According to the WGC, Russia bought 3 tons of this precious metal in September.
In mid-October, the price of gold surpassed $4200 per ounce for the first time in history. Investors traditionally view gold as a means of capital protection during periods of geopolitical and economic turmoil.
The price of gold has risen by nearly 50% this year, Bloomberg noted. One of the factors was a surge in economic and geopolitical uncertainty following Donald Trump's return to the White House.
Bank of America predicted a gold price of $5000 per ounce by 2026. The bank expects the precious metal to continue its rise next year amid White House policies.
Leave a comment