Central banks increase gold holdings in May

LONDON (July 6)  In the month of May central banks around the world added a net 35t to global gold reserves. This represents the second consecutive month of net increases after a drop in March. This year the central banks of Turkey, Egypt, Iran, and India have been the main buyers but this month Germany was a net seller.

Purchases were dominated by the same central banks as in April. Turkey (13t), Uzbekistan (9t), Kazakhstan (6t), and India (4t) all added to their gold reserves once again in May, accounting for most of the month’s buying. In the Middle East, Qatar added 5t to its gold reserves in May, taking total gold reserves back to 56.7t, the same level as the start of 2022. Germany was the only notable seller during the month, reducing its gold reserves by 2t, likely for its longstanding coin-minting program.

Last week, the Central Bank of Iraq (CBI) also announced it had bought around 34 tonnes in June, making its total gold reserves to just over 130 tonnes. This is the first significant gold purchase from the CBI since September 2018 (6.5t).

Gold has recently moved through a support zone of $1787.03/oz as greenback strength persisted. The main consolidation low stands at $1676.01/oz. There is another support area at $1750.78/oz that could help stem the losses but the price action is looking pretty weak at the moment. 

KITCO