Editorial: Central banks are major gold buyers in 2019

With the gold market’s supply and demand numbers coming in for the first two to three months of 2019, one of the features of this year that’s coming into focus is the strong buying of gold by central banks around the world. And yes, there is a distinct geopolitical element to it all, as these central bank buyers are predominantly from countries that stand in direct economic or political opposition to the U.S., and so are keen to move away from the U.S. dollar as a foreign reserve currency. With central bank gold-reserve statistics for February 2019 now published, the World Gold Council (WGC) notes that central banks bought a net 51 tonnes (1.64 million oz.) in February – or the biggest monthly increase since October 2018 – when central banks reported an increase in global gold reserves of 105 tonnes. The WGC underscores that gross monthly sales in February were “virtually non-existent,” with central banks selling just 0.2 tonnes (64,000 oz.) during the month. Furthermore, central banks’ gold holdings have grown … Continue reading at The Northern Miner.