Central banks continue to buy gold as safe haven asset

5th May 2020 By: Marleny Arnoldi - Creamer Media Online Writer

The World Gold Council (WGC) says central banks have continued to be net purchasers of gold in March, adding 46 t to global reserves.

However, central banks added 4% less gold to reserves compared with March last year.

The WGC comments that on a year-to-date basis, the rate of gold purchases this year is slower than last year.

“As central bankers around the globe continue to focus on the measures needed to contain the economic impact of Covid-19, the need for robust, liquid and diversified international reserves remains apparent.

“The positive net purchases of gold confirm that it remains an important component of central bank reserves and is integral to their strategic asset allocation,” the council reports.

As at May, the US holds the lion’s share of gold reserves, at 8 133 t, followed by Germany with 3 364 t.