Central banks go big on gold buying

Global reserves expanded 333.2 tons in the first half, 39% higher than the five-year average for the period.

CENTRAL bankers’ appetite for gold is growing, providing a bright spot for the traditional haven as investor interest ebbs.

Global reserves expanded 333.2 tons in the first half, 39% higher than the five-year average for the period, according to a quarterly summary from the World Gold Council, which noted strong purchases by Thailand, Hungary and Brazil.

If central banks continue to buy at the levels seen recently, it will provide a supportive element for the market, according to Louise Street, senior markets analyst at the council. - Bloomberg