India Shines In Global Gold Market: Now 2nd Largest Buyer With 876 Tonnes! WGC Reports

In November 2024, central banks worldwide collectively increased their gold reserves by 53 tonnes, with the Reserve Bank of India (RBI) contributing 8 tonnes, as reported by the World Gold Council (WGC). Throughout 2024, central banks, especially those from emerging markets, remained active buyers of gold to secure stable assets amidst global economic uncertainties.

The WGC's report titled 'Central bank gold statistics November 2024’ highlighted that central banks globally continued to significantly influence gold demand. "Assessing the final act of 2024, central banks around the world continued to play a leading role in the demand for gold. November represented another solid month of gold buying as central banks collectively added a net 53 tonnes to global official holdings," stated the report.

Gold Purchases by Central Banks

The RBI's additional purchase in November brought its total gold holdings to 876 tonnes. This increase positioned India as the second-largest buyer of gold in 2024, with year-to-date purchases reaching 73 tonnes. Poland led the purchases in November, adding 21 tonnes and bringing its annual total to 90 tonnes, with overall holdings now at 448 tonnes.

Uzbekistan's Central Bank made a significant addition of 9 tonnes to its reserves in November, marking its first purchase since July. The bank's total net purchases for the year now stand at 11 tonnes, increasing its total holdings to 382 tonnes. Kazakhstan also increased its reserves by 5 tonnes for the second consecutive month, making it a net purchaser with total holdings of 295 tonnes.

China and Other Countries' Contributions

The People's Bank of China resumed buying after a six-month break, adding 5 tonnes in November. This brought China's year-to-date net purchases to 34 tonnes and total holdings to 2,264 tonnes or about five percent of its total reserves. Meanwhile, Jordan's Central Bank reported a rise of four tonnes in its reserves for the first time since July.

Turkey's central bank increased its reserves by three tonnes while engaging in reverse swap agreements with domestic commercial banks. The Czech National Bank added nearly two tonnes in November, marking its twenty-first consecutive month of purchasing gold. Its year-to-date net purchases now stand at almost twenty tonnes with total holdings exceeding fifty tonnes.

Other Notable Gold Transactions

The Bank of Ghana continued its domestic purchase programme by adding one tonne in November. This raised Ghana’s year-to-date net purchases to ten tonnes and lifted total holdings to twenty-nine tonnes. Additionally, Ghana launched the Ghana Gold Coin publicly as part of efforts to stabilise its economy and promote investment in national gold reserves.

Conversely, Singapore's Monetary Authority was the largest seller for the month, reducing its reserves by five tonnes. Its year-to-date net sales now amount to seven tonnes leaving overall holdings at two hundred twenty-three tonnes.

These transactions reflect ongoing strategies by various nations to manage economic stability through strategic gold acquisitions or sales. As global economic conditions fluctuate, these moves highlight differing approaches taken by countries based on their unique financial landscapes and objectives.