Central banks around the world have shown a significant increase in their demand for gold, with 2022 witnessing the highest annual gold purchases since record-keeping began in 1950.
According to the World Gold Council, central banks bought a staggering 1,078 tonnes of gold last year, more than double the 450 tonnes purchased in 2021.
Official sector institutions remained eager buyers, adding 228 tonnes in Q1 2023. While this figure is lower than the preceding two quarters, it nevertheless marks the strongest first quarter on record.
Source: World Gold Council
This remarkable growth in central bank gold buying becomes even more impressive when considering the record-breaking pace of demand observed in the previous year. The rolling four-quarter total surged to 1,224 tonnes in Q1, primarily driven by substantial purchases in recent quarters.
The World Gold Council identifies four central banks as major contributors to the reported purchasing during the first quarter. Among them, the Monetary Authority of Singapore (MAS) emerged as the largest single buyer, increasing its gold reserves by 69 tonnes. This marked the first increase since June 2021 and highlights that gold buying in Q1 was not limited to emerging-market central banks. The MAS now holds a total of 222 tonnes in gold reserves, reflecting a 45% increase from the end of 2022.
Another notable buyer was the People's Bank of China (PBOC), which reported a 58-tonne increase in its gold reserves. Since recommencing reports of purchases in November 2022, the PBOC has added a total of 120 tonnes to its gold reserves, raising them to 2,068 tonnes, equivalent to 4% of the reported gold reserves worldwide.