Central Bank gold sales cut global purchases by 64% in Q2.
According to the World Gold Council (WGC), net central bank gold purchases fell 64% to 103 tonnes in the second quarter, covering April-June. Large gold sales by the Central Bank of the Republic of Turkey were crucial to the decline.
According to the WGC report, the Turkish central bank, a leading buyer for most of the first quarter, "suddenly became a significant net seller" in March. The sales continued in the following months.
The report said the central bank sold 132.2 tons of gold in Q2 when elections were held. Its gold reserves then fell to 439.75 tons after the sales.
With inflation high, those seeking to protect their investments turned to gold and foreign exchange. Gold import restrictions were imposed to curb the growing current account deficit, and the central bank began to meet domestic demand from its reserves.
Kazakhstan had the highest gold sales in Q2 at 18.5 tonnes. The Turkish central bank's substantial sales amid an election season contributed significantly to the 64% decline in global major bank purchases compared to 2021.