Central banks bought less gold in August than in previous months, despite lower prices for precious metal in the summer, according to the World Gold Council.
In total, 20 tons of precious metal were purchased during the specified period, which is half as much as the previous month. The largest buyer of the yellow metal in August and since the beginning of this year is Turkey. In August, this country acquired another 9 tons of gold, bringing the cumulative sales figure this year to 84 tons, and the total reserves to 478 tons, the highest since the second quarter of 2020.
Krishin Gopaul, senior analyst at the World Gold Council, commented on the situation as follows: "In August, central bank activity in the market declined. Several banks made a significant contribution to the aggregate monthly figure. Three banks published data on the increase in their gold reserves by a ton or more, while there were no large sellers. "
Gold is an instrument to hedge inflation and economic instability, but its rate has fallen recently. Over the past 6 months, the figure has decreased by more than 14%. Investor interest in defensive assets did not rise either, despite concerns about geopolitical instability and an increase in inflation.
Gold fell to $1,660 an ounce by the end of September, its lowest level since March 2020.