India, China amongst top gold buyers in March quarter as central banks hoard yellow metal

May 10, 2023

By: Rounak Jain

Central banks tank up on gold

Central banks around the world have been buying the safe-haven asset aggressively amidst recession concerns, with demand reaching 228 tonnes during the March quarter, according to the World Gold Council.

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Why is gold considered a safe-haven asset?

Gold is considered as a store of value and a hedge against inflation and economic slowdown, giving it the status of a safe-haven asset. Other factors like rising interest rates resulting in a decline in US bonds value have also played a part in increasing the demand for gold.

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Top buyers of gold

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Singapore

Singapore increased its gold reserves by 45 percent in the March quarter to 222.41 tonnes from 153.74 tonnes at the end of December 2022, which is an addition of 68.67 tonnes.

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China

China increased its gold reserves by 57.85 tonnes to 2,068.36 tonnes in March, but it is still a meagre increase of 3 percent in relative terms.

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Turkey

Turkey scooped up 30.21 tonnes of gold during the March quarter, increasing its reserves to 571.98 tonnes.

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India

India continued to buy gold, slowly but steadily, increasing its total reserves by 7.26 tonnes to 794.62 tonnes at the end of March.

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Czech Republic

The central European country increased its gold reserves by 13 percent to 13.5 tonnes, buying 1.54 tonnes of gold during the March quarter.

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Top sellers of gold

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Kazakhstan

Kazakhstan is the top gold seller in the March quarter with a reduction of 19.64 tonnes as gold prices crossed the $2,000 per ounce mark. The country’s gold reserves stand at 332 tonnes, the lowest since August 2018.

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Uzbekistan

Gold is one of the largest exports of Uzbekistan, and the country reported a decline of 14.61 tonnes of the yellow metal during the March quarter. Its current reserves stand at 381.33 tonnes.

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Cambodia

The South East Asian country reduced its gold reserves by nearly one-fifth during the March quarter to 42.49 tonnes, with sales of 10.07 tonnes of gold.

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Russia

Russia was one of the largest buyers of gold in 2022, but it ended up selling 6.22 tonnes of gold during the March quarter. It still has one of the largest reserves of gold in the world at 2,326.52 tonnes.

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Croatia

Croatia sold all of its gold during the March quarter, with the sale of gold weighing 1.93 tonnes.

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