Bloomberg: Central banks are selling gold for the first time in a decade

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Reuters

Bloomberg: Central banks are selling gold for the first time in a decade

The agency “Bloomberg”, in a report, stated that central banks in the world became selling gold in the third quarter of this year, for the first time in nearly a decade (since 2010).

Regarding the reason for banks selling gold, Bloomberg indicated that some countries have taken advantage of high record precious metal prices to ease the impact of the Corona virus pandemic.

Data from the markets showed that net sales in the third quarter of 2020 amounted to about 21.1 tons of the yellow metal, and for comparison, the world’s central banks bought 141.9 tons of gold in the same period a year ago.

According to a report issued by the World Gold Council, Uzbekistan and Turkey led the current wave of selling. The Russian Central Bank also announced that it would sell gold in the third quarter for the first time in 13 years.

The data indicated that the two central banks of Turkey and Uzbekistan sold 22.3 tons and 34.9 tons of gold, respectively, in the third quarter of 2020.

The Corona crisis pushed gold prices higher in 2020, while the wave of buying by central banks in previous years helped gold to rise.

The financial group “Citigroup” expects a rebound in central banks’ demand for gold in 2021 after a slowdown this year from near-record purchases in 2018 and 2019.

Source: “Bloomberg”

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