Central banks are on gold buying spree as they added nearly 107 tonnes to global gold reserves in February and March this year, owing to rise in trade tensions and economic slowdown.
Central banks are on gold buying spree as they added nearly 107 tonnes to global gold reserves in February and March this year, owing to rise in trade tensions and economic slowdown. The yellow metal is considered to be a safe haven among the global investors to diversify their portfolios during times when market volatility is on the rise.
The central banks across the world hold 33,976.5 tonnes of gold, the World Gold Council (WGC) report showed. They made purchases of 31 tonnes in March and 76 tonnes in February, according to the WGC data. The Reserve Bank of India (RBI) holds 608.8 tonnes of gold reserves standing at 11th position on the list of top gold holders across the globe. The yellow metal accounts for 6.3 per cent of the total reserves, the report said.
United States (8,133.5 tonnes); Germany (3,369.7 tonnes); International Monetary Fund (2,814 tonnes); Italy (2,451.8 tonnes); France ( 2,436 tonnes) hold nearly half of the gold reserves accounted by the global central banks, the report showed.
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The gross purchases during the period by four central banks stood at 38 tonnes, implying a rise of one tonne or more. The gross sales amounted to 7 tonnes in the same period.
Meanwhile, the RBI increased its gold holding by nearly 42 tonnes in 2018, the International Monetary Fund (IMF) data showed.
Rise in geopolitical and economic uncertainties push the central banks across the world to diversify their reserves, the experts say. The central banks search safe and liquid assets during such times. Last year, governments across the world added 651.5 tons of bullion. It is the second-highest total of purchases which is on record, according to the WGC data.