Almost 400 tons were scooped up by central banks in the third quarter, more than quadruple the amount a year earlier, according to the World Gold Council. That takes the total so far this year to the highest since 1967, when the dollar was still backed by the metal.
Bullion prices have been pressured this year by aggressive US interest-rate hikes as the Federal Reserve tackles soaring inflation, which have prompted exchange-traded fund investors to sell the non-yielding asset. But support has come from other areas, such as retail buyers in Asia and central banks.
Central banks including Turkey and Qatar were among recent buyers, as well as unreported purchases from institutions — which the WGC said that although isn’t uncommon, amounted to a “substantial” estimate. Not all countries report their gold purchases regularly, including major ones like China and Russia.
“Not all official institutions publicly report their gold holdings, or may do so with a lag,” the WGC said in a quarterly report released Tuesday. “We can’t rule out further unreported buying.”
The council expects overall investment for gold to decline this year, as lower ETF and over-the-counter demand offset strong retail buying.
Spot gold was steady at $1,635.04 an ounce as of 9:08 a.m. in Singapore, after finishing 0.7% down on Monday. The Bloomberg Dollar Spot Index was little changed. Silver and palladium gained, while platinum was flat.
More third-quarter figures, comparison year-on-year:
Overall investment demand fell 47% to 124 tons, led by ETF sales.
Bar and coin demand surged by more than a third to 351 tons.
Global jewelry purchases rose 10% to 523 tons, driven by India.
Technology demand fell 8% to 77 tons.
Total supply rose about 1% as mined production increased, though recycling eased.