via Kitco:
Polish central bank bought 14.8 tonnes of gold in April, which was the biggest purchase since June 2019.
According to the National Bank of Poland, the country’s gold reserves rose to 7.828 million fine troy ounces (243.5 metric tonnes) last month from 7.352 million. This was the largest increase since June 2019, when Poland’s reserves rose by 94.9 tonnes.
The value of gold, including gold deposits and gold swapped, climbed to $15.52 billion in April from $14.55 billion.
The April purchase also comes after the Bank’s Governor Adam Glapinski’s said in 2021 that Poland was planning to add 100 tonnes to its gold holdings to prepare for “the most unfavorable circumstances.”
“Why does the central bank own gold? Because gold will retain its value even when someone cuts off the power to the global financial system,” Glapinski told local newspaper. “Of course, we do not assume that this will happen. But as the saying goes – forewarned is always insured. And the central bank is required to be prepared for even the most unfavorable circumstances. That is why we see a special place for gold in our foreign exchange management process.”
This means that more buying could follow, said BMO Capital Markets managing director Colin Hamilton. “We expect central bank buying to remain robust this year (+596t), an ongoing tailwind for gold prices and sentiment,” Hamilton said.