Over 40 tons of the precious metal were added to state reserves in October, according to the World Gold Council

Central banks have continued their gold buying spree, with reported net monthly purchases totaling 42 tons in October, the World Gold Council (WGC) has revealed.

According to a report published last week, the figure was 41% lower than September’s revised total of 72 tons, but still 23% above the January-September monthly average of 34 tons.

The People’s Bank of China (PBoC) remained the largest bullion buyer, reporting purchases of 23 tons of gold in the 12th consecutive monthly addition to its reserves. This reportedly brings the PBoC’s net purchases to 204 tons during 2023, with its overall reserves amounting to 2,215 tons. “Despite the significant increase, reported gold reserves still account for just 4% of the bank’s total international reserves,” the WGC wrote.

The Central Bank of Türkiye also made a significant purchase during the month, buying 19 tons to increase its official gold reserves (central bank plus Treasury holdings) to 498 tons.

Beyond these two banks, buying was more modest, the report noted. The National Bank of Poland reportedly continued adding to its gold stockpile, buying another six tons. Its holdings of the yellow metal have now risen by over 100 tons this year, to 340 tons in total. The Reserve Bank of India, the Czech National Bank, the National Bank of the Kyrgyz Republic, and the Qatar Central Bank were the other significant buyers in October.

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The report also noted that central bank gold purchases have heavily outweighed sales of the metal so far this year.

“Even before October’s net buying, we noted that 2023 was likely to be another colossal year of central bank buying. Having started Q4 positively, this year’s central bank demand looks set to climb even higher,” the WGC concluded.

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