The trend is your friend.. As we approach mid-year 2024 in the...

The trend is your friend..

As we approach mid-year 2024 in the environment of an all-time high US dollar gold price, its notable that central bank gold buying continues to be one of the main themes dominating gold market discussion.

This is because following a record year in 2022,when according to the World Gold Council (WGC), central banks and official financial institutions across the world net purchased a massive 1082 tonnes of gold for their monetary gold reserves, the year 2023 was nearly as impressive, with central banks as a group , just shy of the 2022 total.

Given that total gold mining production was 3625tonnes in 2022, and, it can be seen that central banks are now responsible for buying the equivalent of between 28 – 30% of allnewly mined gold.

https://www.bullionstar.com/blogs/ronan-manly/central-bank-gold-buying-latest-trends-and-developments/

Monetary gold buying activity has now continued into 2024, with central banks purchasing a, which again according to the WGC, is the strongest first quarter on record.

Despite the lack of transparency in unreported gold purchases, the substantial and sustained increase in central banks’ gold reserves highlights physical gold’s enduring role as a safe haven asset that has no counterparty risk. This gold buying dynamic is likely to continue, and indeed central banks themselves say it’s going to continue, as it reflects a broader move towards a multipolar financial system where gold plays a central role in preserving national wealth against geopolitical risks, while potentially being part of a new international trade settlement system.