Poland and Brazil central banks dominate the gold market in November
Central banks, following robust activity in the third quarter, have continued their gold shopping spree through November.
According to social media posts from Krishan Gopaul, Senior Analyst, EMEA at the World Gold Council (WGC), Poland and Brazil were the top gold buyers as prices consolidated after hitting record highs in October.
China, which has been a dominant player since 2022, continues to see subdued demand. According to the data, the People’s Bank of China bought 1 tonne of gold last month.
“This lifts YTD net purchases to 26 tonnes, and total gold holdings 2,305 tonnes,” Gopaul said.
However, this was the fifth consecutive month in which China bought less than 2 tonnes of gold.
Poland’s central bank bought 14 tonnes of gold in November. Its total gold holdings now stand at 544 tonnes, representing 27% of total reserves.
Brazil was the second-largest buyer in November, increasing its official reserves by 11 tonnes and marking its third consecutive month of purchases.
“Over that period, it’s added a total of 43 tonnes. Total gold holdings now 172 tonnes,” Gopaul said.
Uzbekistan’s central bank was also active last month, increasing its official reserves by 10 tonnes. Gopaul noted that the central bank’s holdings at the end of the month totaled 380 tonnes, just two tonnes lower than at the start of the year.
The Czech National Bank also remains active in the gold market, buying 1.6 tonnes of gold last month.
“So far this year, the central bank has added 20 tonnes to its gold reserves, a near 40% increase in holdings,” he said.
Finally, in a social media update on Wednesday, Gopaul said that the National Bank of Kazakhstan purchased 8 tonnes of gold in November.
“Total gold holdings now 333 tonnes, 49 tonnes higher than at the start of the year,” he said.
In its third-quarter global demand trends report, the WGC said it expects central bank demand to total between 750 and 900 tonnes this year. Although demand is down from the 1,000-tonne increases seen in the last three years, official purchases remain well above long-term averages.
Despite slightly lower purchases expected this year, the WGC has said that demand remains fairly resilient given the price gains seen this year. With prices currently trading around $4,200 an ounce, the gold market is up more than 50% in 2024, marking its best annual performance since 1979.
“Although it appears increasingly unlikely that 2025 annual demand will match levels in the preceding three years, overall demand looks to remain very healthy,” analysts at the WGC said. “For reserve managers, it proves that the strategic case for gold is still front and centre.”
