Global central banks sold gold for the first time in a decade under the influence of the epidemic

Original title: Global central banks sold gold for the first time in a decade under the influence of the epidemic

With some gold producing countries taking advantage of gold prices approaching record levels to ease the impact of the new crown epidemic, global central banks have become gold sellers for the first time since 2010.

According to a report by the World Gold Council, global central banks sold 12.1 tons of gold in the third quarter, compared with 141.9 tons in the same period last year. Uzbekistan and Turkey have the largest sales, and the Russian Central Bank also announced the first quarterly sales in 13 years.

Although the inflow of funds to exchange-traded funds (ETFs) will promote the rise of gold prices in 2020, central bank purchases have supported gold prices in recent years. Citigroup predicted last month that central bank demand, which has slowed this year from record levels in 2018 and 2019, will rebound in 2021.

“In the current environment, it is not surprising that the central bank may consider using gold reserves,” said Louise Street, chief analyst of the World Gold Council. “Almost all sales come from central banks that buy gold from domestic sources and then sell it at high prices when financial resources are tight.”

According to the World Gold Council, the central banks of Turkey and Uzbekistan sold 22.3 tons and 34.9 tons of gold respectively in the third quarter.

The World Gold Council said that in the third quarter, although total gold demand fell 19% year-on-year to the lowest level since 2009, gold prices still hit a record high. Indian jewelry demand has fallen by half, and China’s jewelry consumption has also declined.

Source: Financial industry websiteReturn to Sohu to see more


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