Thursday, October 29, 2020

Central banks sell gold for first time since 2010

261018-image-russia_central_bank.jpg 261018-image-russia_central_bank.jpg

Russian Central Bank

 https://seekingalpha.com/news/3628159-central-banks-sell-gold-for-first-time-since-2010

  • Global central banks were net sellers of 12.1 tons of gold (XAUUSD:CUR) in Q3 vs. net purchases of 141.9 tons a year earlier, according to the World Gold Council. The last quarter in which central banks were net sellers was Q4 of 2010.
  • Among the sellers were Uzbekistan and Turkey, and Russia was a net seller for the first time in 13 years.
  • Putting things in a bit of perspective, Q3's sales come following record purchases by central banks in 2018 and 2019. The sales come alongside record prices for gold, and also came at a time when a few governments were under some fiscal pressure thanks to the pandemic panic.
  • Q3's sales were part of an overall slowing in bullion demand in Q3, which fell 19% year-over-year to the weakest since 2009. Jewelry demand, in particular, has been weak throughout 2020.
  • Gold this morning is flat at $1,877 per ounce. It started Q3 at about $1,775, eventually rising to $2,100 in early August.
  • Some related ETFs: GLD, IAU, PHYS, SGOL, UGLDF, BAR, UGL, GLDM, AAAU, GLDI

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