Central bank buying of gold reached its highest levels for almost half a century last year, as Russia, Turkey and Kazakhstan boosted purchases to shift their reserves away from the US dollar.
Central banks bought a net $27bn worth of gold, driven by Russia, whose net purchases were the highest on record, according to the World Gold Council, an industry-backed body. Volumes came to 651.5 tonnes, an increase of 74 per cent on the previous year.
The buying reflects continued efforts by emerging market central banks to diversify their large holdings of dollar reserves in the face of rising global trade tensions. The share of central bank currency reserves held in the dollar fell close to a five-year low in the third quarter of 2018, according to the International Monetary Fund.
Fed Capitulation is the Beginning of the End – Peter Schiff