The latest data from the World Gold Council (WGC) shows that the net gold purchases by central banks in October were 60 tons, the highest record for 2024.

Marissa Salim, Senior Research Director for Asia Pacific at WGC, wrote: "The gold purchases in October were twice the 12-month average, with the Reserve Bank of India leading the year to date purchases and monthly reported purchases. India added 27 tons of gold in October, bringing its total gold purchases so far this year to 77 tons. India's net purchases so far this year are five times that of 2023

She added: "Emerging market central banks continue to dominate the market. Türkiye and Poland have increased their gold reserves by 72 tons and 69 tons respectively so far this year. These three central banks alone account for 60% of the global net purchases this year."

Several other central banks reported a net increase of 1 ton or more in gold reserves in October.

WGC said: "Türkiye's central bank added 17 tons of gold, making it the 17th consecutive month for net purchases in October, which is also the highest monthly data reported since December 2023. The data in October has exceeded the quarterly total of the second quarter and the third quarter. So far this year, Türkiye has added 72 tons, accounting for about 34% of its total reserves."

The Polish central bank bought 8 tons of gold this month, marking the seventh consecutive month of net purchases. Salim said, "So far this year, Poland has added 69 tons, accounting for 17% of its total reserves. The annual report of the Polish central bank emphasizes its commitment to accumulating gold, with the goal of allocating 20% of its official reserve assets to gold

After 5 months of net selling of gold, the Central Bank of Kazakhstan added 5 tons of gold to its reserves. But in 2024, the country will still be a net seller of gold, with a quantity of 4 tons.

She pointed out, "The Czech Central Bank added 2 tons of gold, making it the 20th consecutive month of net purchases in October. During this period, the bank accumulated 37 tons of gold, bringing its total gold reserves to 49 tons

Kyrgyzstan purchased 2 tons of gold in the month, and October was the highest monthly net purchase reported since September 2023, bringing its purchasing volume to nearly 6 tons in 2024.

WGC pointed out that "data provided by the Bank of Ghana shows that its gold reserves currently reach 28 tons. Since May 2023, the country's gold reserves have been steadily increasing. Ghana added another ton in the same month

Figure: Net buying and selling by central banks of various countries so far this year

Salim stated that by the end of the third quarter, the year to date gold purchase volume (including reported and unreported) had reached 694 tons, comparable to the level in 2022, and central bank demand remained strong. The data from the International Monetary Fund (IMF) also shows that net sales can be ignored.

She concluded, "Although the recent rise in gold prices seems to have suppressed some buying and triggered some tactical selling, the rebound in activity reported in October indicates that central banks are still interested in accumulating gold in their reserve portfolios. This reaffirms the role of gold as a strategic asset for central banks to manage risk and diversify reserves.