By the end of July, the volume of gold held by the Central Bank of Uzbekistan increased from 11.7 million to 12.1 million troy ounces (374.8 tons)

Tashkent

In July, Uzbekistan once again became one of the world’s largest gold buyers, reports the World Gold Council.

During the month, the gold reserves of global central banks increased by another 37 tons.

According to the investment company KAP Depo, the main buyers of the precious metal were the National Bank of Poland (14.3 tons), the Central Bank of Uzbekistan (9.6 tons), and the Reserve Bank of India (5.4 tons), reports Gazeta.uz.

They were followed by Jordan (4.3 tons), Turkey (3.8 tons), Qatar (2.3 tons), and the Czech Republic (1.6 tons).

The largest sellers of gold were Kazakhstan (3.9 tons) and Mongolia (0.7 tons).

It should be noted that by the end of July, the physical volume of gold held by the Central Bank of Uzbekistan increased from 11.7 million to 12.1 million troy ounces (374.8 tons). At the same time, the value of gold reserves rose by $1.8 billion, reaching $29.2 billion.

The purchases in July shifted the Central Bank of Uzbekistan from a net seller to a net buyer of gold since the beginning of the year (+3 tons). In June, the regulator purchased 9 tons of precious metal.

“Central banks have shown a commitment to accumulating gold in recent months. Although the overall level of reported demand has decreased as the price of gold continued to rise to new highs, it has still remained positive,” according to a WGC review.

In July, gold prices increased from $2,325 to $2,445.76 per ounce (peaking at $2,480), a 5.2% rise.

According to S&P Global Ratings, Uzbekistan’s usable foreign exchange reserves are expected to decrease until 2027 due to the anticipated drop in gold prices and the ongoing current account deficit. The Central Bank of Uzbekistan’s monetary gold reserves account for more than 80% of the total foreign exchange reserves. The Central Bank of Uzbekistan has a priority right to purchase gold mined in the country. It buys gold for local currency and then sells dollars on the local market to offset the impact of its intervention on the Uzbek sum.

Kazakhstan only country in world to reduce its gold reserves

The National Bank of Kazakhstan was the only central bank in the world to reduce its gold reserves in July, despite the overall trend of increasing reserves. Kazakhstan’s gold reserves decreased by 4 tons, the World Gold Council (WGC) reports.

According to the latest reports, in July 2024, global central banks collectively purchased 37.1 tons of gold, the highest figure in recent months, reports Kursiv.kz.

As a result, Kazakhstan’s total gold reserves decreased to 295 tons, which constitutes 55% of the country’s total reserves. The main gold buyers in July were the central banks of Poland (+14 tons), Uzbekistan (+10 tons), and India (+5 tons).

WGC analyst Krishan Gopaul attributes the growing demand for gold by central banks to a desire to diversify reserves and reduce dependence on the dollar. Despite the rising prices of gold, central banks continue to actively purchase the precious metal, indicating its high attractiveness as a reliable asset in the face of global economic uncertainty.

Kazakhstan was the only country to reduce its gold reserves in July (by 4 tons), although in April Kazakhstan ranked second in the world for net gold purchases, with almost 6 tons (out of a global total of 33 tons). In June, the National Bank of Kazakhstan sold even more (6 tons) than in July, but it was not the only central bank in the world to reduce reserves. Singapore also did so (selling 12 tons).

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Published under International Cooeration with "Sindh Courier"