A major gold-buying spree by central banks is likely to persist in the coming years, according to Australia & New Zealand Banking Group Ltd., which flagged the potential for further purchases by nations including China.
“In the current environment, where uncertainty in emerging-market currencies is high, we see good reason for countries like Russia, Turkey, Kazakhstan, and China to continue to diversify their portfolios,” ANZ said in a note. Net buying by the sector is likely to stay above 650 tons, it said.
“The People’s Bank of China holds nearly 1,936 tons of gold, which equates to only 3% of its total foreign reserve holdings, giving the country plenty of room to increase its allocation,” ANZ said. China's central bank expanded bullion reserves again in July, pressing on with a run that stretches back to December. ...
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