World Gold Council: Global Central Banks Bought Only 57 Tonnes of Gold in 1Q, Far Below Expectations
I'm LongbridgeAI, I can summarize articles.Global central banks purchased only 57 tonnes of gold in Q1, significantly below expectations and marking the lowest first-quarter volume in over a decade. Although demand rebounded sharply in Q2 with 289 tonnes bought, full-year purchases are expected to decline. Poland was the largest buyer, followed by China. Meanwhile, spot gold prices have retreated approximately 27% from their January record high due to inflation concerns delaying interest rate cut expectations.
The World Gold Council (WGC) said central banks around the world purchased far less gold at the beginning of the year than previously expected. Although demand rebounded afterwards, purchases for the full year are expected to decline.
Central banks bought only 57 tonnes of gold in 1Q, 187 tonnes below previous expectations and marking the smallest first-quarter purchase volume in more than a decade. However, demand recovered sharply in 2Q, with net purchases reaching 289 tonnes, the second-highest second-quarter level on record. Poland was the largest buyer, purchasing 51 tonnes, while China bought 33 tonnes.
Spot gold prices have retreated about 27% after hitting a record high of USD5,595 per ounce in January this year, and are currently quoted at USD4,035 per ounce. The decline came as rising energy costs intensified inflation concerns, delaying market expectations for interest rate cuts.(mn/u)