Emerging market central banks lead gold accumulation in 2024, with Turkey and Poland at the forefront
In August, central banks reported a net gold purchase of 8 tonnes, a significant drop from the early 2024 highs.
The reduced demand marks the lowest level since March, when central banks reported a net sale of 2 tonnes. This recent figure also falls well below the 12-month average of 33 tonnes.
Despite this, emerging market (EM) central banks continued to drive demand, responsible for 70 percent of the total net purchases so far this year.
Among the EM central banks, Turkey remains the largest buyer, contributing 25 percent of the overall buying activity in 2024.
Only four central banks added more than 1 tonne of gold to their reserves in August. The National Bank of Poland made the most significant move, purchasing 6 tonnes and raising its total reserves to 398 tonnes.
Over the last five months, Poland has consistently been a net purchaser, accumulating a total of 39 tonnes during that period.
Turkey’s central bank, in its fifteenth consecutive month of net gold purchases, added 3 tonnes to its reserves in August. Year-to-date, Turkey remains the top gold buyer, having acquired 52 tonnes of gold, which accounts for about 35 percent of its total reserves.
India’s Reserve Bank also increased its holdings by 3 tonnes in August. This marks the eighth consecutive month of gold accumulation for India, which now stands as the second-largest net purchaser of gold in 2024, with 45 tonnes acquired year-to-date.
The Czech National Bank followed suit, adding 2 tonnes in August, extending its streak of net purchases to 18 months. During this period, the Czech National Bank has accumulated 33 tonnes of gold, bringing its total reserves to 45 tonnes.
In contrast to the other countries, the Central Bank of Kazakhstan reduced its gold reserves by 5 tonnes in August. This was the fourth consecutive month of net sales, bringing Kazakhstan’s total gold reserves down to 290 tonnes, or about 55 percent of its total reserves.
Year-to-date, Kazakhstan has now become a net seller, reducing its gold holdings by 5 tonnes overall.
Reported central bank activity slowed significantly in August, which could have been influenced by the consistent upward trend in gold prices, even though this is not a primary driver for central banks.
Importantly, sales did not increase, which suggests that central banks may be adopting a ‘wait and see’ approach rather than shifting their long-term strategies. Key factors such as the need for effective diversifiers and gold’s stable performance during periods of risk remain in place.
Looking ahead, the outlook for the remainder of the year is positive, though central bank gold purchases are expected to fall short of last year’s total.
A more comprehensive view of central bank activity will be provided in the upcoming Q3 Gold Demand Trends report, which is scheduled for release at the end of October.
The year-to-date data from the second graph shows Turkey, India, and Poland leading net purchases, with each adding substantial amounts of gold to their reserves.
In contrast, the Philippines, Thailand, and Curaçao and Sint Maarten are net sellers, each reducing their gold holdings by varying amounts.
