Over the past decade both Russia and China have been the primary buyers of gold at the central bank level, but under the radar several more emerging markets have been doing the same thing. And this trend will only continue according to new data out from the World Gold Council.
Central banks around the world are adding to their gold stashes, particularly in emerging markets, as they try to shore up their currencies amid rising geopolitical tensions and, in some cases, to stave off U.S. economic pressure.
The total amount of central bank holdings of gold has risen by about 7% over the five years to 2016, according to the World Gold Council, a global trade group. Last year, central banks were net buyers of gold, for the seventh year in a row, according to Thomson Reuters GFMS. As of the end of July, they held some 33,400 tons of gold reserves in all.
Monetary authorities have been increasing their reserves of the precious metal mainly to defend their currencies. Analysts predict the trend will continue for a while. – Asia Nikkei