The World Gold Council (WGC) says central bank gold demand has remained good so far this year following consistent additions of gold in 2022.

In January, central banks collectively added net 31 t of gold to global reserves, which was a 16% increase on December and consistent with the consecutive ten months of net buying having occurred prior.

The council points out that central bank buying activity was relatively concentrated in January, with only three banks accounting for gross purchases of 44 t, and one bank – the central bank of Uzbekistan – offsetting this with 12 t of sales.

The largest gold buyer in January – Türkiye – was also the largest buyer of gold in 2022, with its gold reserves now at 565 t.

Another major buyer in January, China, added 15 t to its gold reserves in January, which now stand at 2 025 t.

The WGC says focus on this sector of the gold market has been intense in recent months, owing to the record level of buying from central banks in 2022. The council envisions central banks remaining positive towards gold this year and continuing to be net purchasers.

However, it is reasonable to believe that central bank demand will not exceed 2022 levels.