“Central Banks Continue to Buy Gold Despite High Prices, US Debt Concerns Rise – Investing Update”

Investing.com – Purchasing campaigns from global central banks did not stop, despite the strong rise in the prices of the yellow metal previously, as data revealed a central purchase of 17.3 tons of gold for an Asian country in March during gold trading at very high levels.

But before looking at central banks and the fever of buying gold as a hedge, let’s look at the currently high gold, whose futures contracts are trading at 2021.95, an increase of nearly $30, up by 1.50%, while spot contracts rose by $30.25 to $2012.9, up by 1.54%.

Now the reason for its rise again

Gold rose strongly in today’s trading, especially after the US Treasury announced that the US might not pay its debts in June or July if the US Congress does not raise the debt ceiling.

Also, press reports from CNBC revealed that members of Congress are asking the US Federal Reserve Chairman, Jerome Powell, to stop raising interest rates. These statements were followed by expectations of a stronger cut after reaching the top.

Who are the banks that bought gold in March..buying from a rise

Even as gold traded at higher levels in March, the Singapore central bank continued to add gold to its reserves throughout the month, according to the World Gold Council.

Krishan Gopaul, senior analyst at WGC, said the Monetary Authority of Singapore bought 17.3 tons of gold in March.

“This means that they bought 68.7 tons of gold in the first quarter of 2013, which raised gold reserves to 222.4 tons (45% higher compared to the end of December),” Gobul said on Twitter.

China also buys gold

China also boosted its reserves in March, with the People’s Bank of China reporting the purchase of an additional 18 tons of gold. This marks the fifth consecutive month of gold buying, as China’s gold reserves now total 2,068 tons, according to the WGC.

Gopaul said India also bought 3.5 tons of gold bars during the month, bringing the total for the first quarter to 7.3 tons. The central bank now holds 794.6 tons of gold in its reserves.

With gold attempting to break above 2000 an ounce in March, there was also some selling activity. Turkey’s central bank, the largest buyer of gold in 2022, has begun unloading its reserves to help meet rising domestic demand.

Central bank data showed that gold reserves fell by 9% in the past seven weeks. The World Gold Council reported that it sold 15 tons of gold in March, marking the first net monthly sale since November 2021.

Türkiye and Kazakhstan.. on the map of gold buyers

Turkey has seen its demand for gold grow over the past year, as citizens embrace the precious metal as a hedge against inflation and local currency depreciation.

Another bank that offloaded some gold was the National Bank of Kazakhstan, which sold 10.5 tons in March. However, Kazakhstan was a seller even before March. Year-to-date, the bank has reduced its gold holdings by 19.6 tons. Total gold reserves in the country now stand at 332 tons – the lowest since August 2018.

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