Daily Gold Market Report

Central Banks’ Gold Acquisitions Defy Expectations
China at the Forefront

(USAGOLD – 11/6/2023) Gold is down this morning and is seeing some pressure as trader and investor risk appetite has up-ticked recently. Gold is trading at $1987.70 this morning, down $4.95. Silver is trading at $23.19, down 2 cents. Central banks globally have significantly increased their gold purchases in the first nine months of the year, with a 14% year-on-year rise, reaching 800 tonnes, according to a report by the World Gold Council. This surge, driven by concerns over inflation and a move away from the U.S. dollar, saw China leading with the People’s Bank of China buying 181 tonnes. The consistent rate of gold acquisition surprised market analysts, especially against last year’s peak. The World Gold Council highlighted discrepancies between official reports and actual purchases, especially from China and Russia. Domestic economic challenges in China further fueled its citizens’ gold investments. John Reade, chief market strategist at the World Gold Council, said that it expected the annual total of official purchases of gold to “get close to or exceed” last year’s 1,081 tonnes, FT reports.