The fall in gold prices in November after Donald Trump won the US presidential elections offered an opportunity to some of the central banks to accumulate the precious metal.

The buying, however, was limited to banks that were active in the months leading to November, according to Krishan Gopaul, Senior Analyst, EMEA, World Gold Council (WGC).

The Reserve Bank of India (RBI) bought eight tonnes of gold in November continuing its accumulation spree for reserves in 2024. Overall, RBI purchased 73 tonnes between January and November 2024 to emerge as the second largest buyer after the National Bank of Poland (NBP). RBI’s total holdings of the yellow metal as of November-end 2024 have been estimated at 876 tonnes.

China resumes buying
In November, NBP increased its gold reserves by 21 tonnes. Its purchases during January-November are now 90 tonnes, taking its total reserves to 448 tonnes - 18 per cent of its total reserves, Gopaul said.

One of the striking features of November purchases was the resumption of gold buying by the People Bank of China (PBoC) after six months. The Chinese bank added five tonnes to its reserves. Overall, it bought 34 tonnes till November, taking its reported gold holdings to 2,264 tonnes. The precious metal makes up about 5 per cent of China’s reserves.

The Central Bank of Uzbekistan was another which bought after three months, purchasing nine tonnes in November. The first addition since July took its total gold purchase till November 2024 to 11 tonnes and its total holdings to 382 tonnes.

For the second consecutive month, the National Bank of Kazakhstan increased gold holdings in its reserves, purchasing five tonnes. This helped the bank turn net buyer for the first time in 2024. Its total holding of the precious metal is 295 tonnes.

Singapore sells
On the other hand, the Monetary Authority of Singapore was the largest seller in November, cutting its reserves by 5 tonnes. Total sales in 2024 till November were seven tonnes and its overall gold holdings dropped to 223 tonnes.

Among others, the Central Bank of Jordan purchased four tonnes - the first monthly rise in four months; the Central Bank of Turkey bought three tonnes and the Czech National Bank two tonnes.

The Bank of Ghana is accumulating the yellow metal through a domestic gold purchase programme. It purchased one tonne in November and till November, it bought 10 tonnes.

Meanwhile, the Bank of Finland lowered its gold reserves by 10 per cent in December to 44 tonnes. It said exchange rate risk was the most significant and increasing foreign exchange reserves its exchange rate risk considerably.

“... so the Bank is strengthening its foreign exchange rate provision by selling about 10 per cent of its gold reserves”. This brought its gold reserves to the lowest level since December 1984.

Courtesy The Hindu Business Line