2023-08-01 11:38:19
Central bank purchases of gold fell for the third quarter in a row, as hefty sales from Turkey outpaced purchases elsewhere.
Net such purchases fell 64% to 103 tons in the second quarter, according to a report issued by the World Gold Council, marking the lowest level in more than a year.
The main reason for the relative decline in purchases was the huge sales carried out by the Turkish Central Bank, amounting to 132 tons of gold in the local market, after restricting imports. Consumer demand for gold has increased since the beginning of 2023 due to rising inflation and concerns about political instability following the holding of elections in the country.
Central bank purchases formed a mainstay to support gold prices, after they came under pressure due to tighter monetary policies.
The record purchases by institutions in the second half of 2022 contributed to the purchases exceeding the sales made by large investors, which led to the yellow metal trading at a fixed price premium over most of its types.
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