The World Gold Council (WGC) report states that Turkey has returned to replenishing its gold reserves after a three-month surge in sales. In June, the Central Bank of Turkey increased its reserves by 11 tonnes, marking its current total gold reserves at 440 tonnes. This comes after a three-month period of selling, during which 159 tonnes of gold were sold, resulting in the country's official gold holdings declining to 428 tonnes.
The WGC report indicates that the amount of sales since March by the central bank of Turkey equaled its total purchases in the previous 12 months. The surge in sales was not caused by a change in their long-term gold policy but rather by the dynamics of the local market, with very high demand for gold and a temporary partial ban on gold bar imports.
The mass gold sales in Turkey even affected the data on central banks, with global official gold reserves decreasing by 27 tonnes in May.
Last year, when central banks around the world were acquiring gold, Turkey became the largest buyer. The country's official gold reserves increased to 542 tonnes, growing by 148 tonnes, the highest level ever recorded. There was also a historical boom in demand in the country's domestic market as Turkish citizens sought to protect their funds from inflation and the devaluation of the local currency. In the previous year, inflation in Turkey exceeded 85%.
In June, the activity of other central banks in gold purchases also increased. The People's Bank of China replenished its reserves by 21 tonnes. This has been the eighth consecutive month of China buying gold, increasing its reserve by 165 tonnes during this period. Oil reserves in the country also increased to 2113 tonnes.
In June, the Polish central bank purchased about 13 tonnes of gold, bringing the total reserves to around 276 tonnes. The Czech National Bank also bought approximately three tonnes of precious metal in June, making it the fourth consecutive month of purchases. Considering the beginning of the year, the total purchases amounted to around eight tonnes.
Uzbekistan also increased its reserves by eight tonnes in June. Since February, this has been a monthly purchase for Uzbekistan.
Central banks continue to hedge their positions.
