Gold price increases, 'tycoons' return to buy 3.9 tons
After being the market leader last year, the gold giant returned to buying in the first month of this year.
According to Kitco, the National Bank of Kazakhstan (NBK) started buying gold at the beginning of this year after selling the most in 2022.
Mr. Krishan Gopaul - senior market analyst for Europe, Middle East and Asia at the World Gold Council said, NBK bought 3.9 tons of gold in January 2023, according to data from the International Monetary Fund (IMF).
This is the first increase in the bank's gold reserves since October last year. NBK currently holds 355.6 tons of gold.
According to a report released last weekend, Kazakhstan sold 51 tons of gold in 2022. Of that, 29 tons were traded in December.
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Central banks buy gold. Photo: Kitco |
It is not surprising that central banks are buying gold from countries that are regular sellers such as Kazakhstan and Uzbekistan, said Krishan Gopaul.
In contrast to Kazakhstan, Uzbekistan sold 12 tonnes of gold last month, according to data from the IMF.
Central bank demand for gold has surged in recent times. According to the World Gold Council, central banks bought a record 1,136 tonnes last year.
Purchases in the fourth quarter of 2022 alone reached 417 tons, bringing the total purchase in the second half of 2022 to more than 800 tons.
Central bank demand for gold has provided a solid basis for rising gold prices, analysts say, and they are expected to continue buying gold this year.
Rising inflation has boosted investment in gold bars and coins, which combined with other demand drivers has offset the outflows from ETFs.
In Vietnam, gold consumption demand in the fourth quarter of 2022 increased by 58% over the same period in 2021, from 8.5 tons to 13.5 tons.
