Is there a race to buy gold in the world? RBI also bought the most gold… know what is the reason

Amid the ongoing geopolitical tensions around the world, many central banks have increased their gold purchases. In the current situation, central banks of all countries are competing to increase the amount of gold in their treasury. In this case, RBI has jointly reached the first position in April-June 2024.

After all, the extent of these purchases can be gauged from the fact that these banks have bought 483 tonnes of gold in the first six months of this year, which is a new record. During January to June, these banks have bought 5 percent more gold than the 460 tonnes of gold in the first half of 2023.

RBI bought the most gold!

If we talk about the first two quarters of this year, then in the second quarter of 2024 i.e. April-June, central banks around the world bought 183 tonnes of gold which is six percent more than April-June. However, this figure is 39 less than the first quarter of this year. In the January-March quarter, central banks bought 300 tonnes of gold.

Now let us know which countries’ central banks were ahead in terms of buying the most gold in the second quarter of the year. According to the data, the National Bank of Poland and the Reserve Bank of India jointly ranked first, who bought 19-19 tonnes of gold.

Turkey’s central bank was at the third place by buying 15 tonnes of gold and it has bought 45 tonnes of gold in the first six months of the year. The central banks of Jordan, Qatar, Russia, Uzbekistan, Kyrgyzstan, Iraq and Czech Republic have also bought a lot of gold in the second quarter. On the other hand, China’s central bank has reduced the purchase of gold.

Effect of gold purchase on prices

Along with this massive purchase by the central banks, many other reasons are having a big impact on the gold market. The reasons that affect the gold market include the movement of the US currency i.e. dollar, inflation and the demand for gold jewellery. The reason for the rise in gold prices this year is also the large-scale purchase of gold by the central banks. At the same time, the price of gold is also affected due to the production of gold mining companies being affected. The countries producing gold include China, Australia, Russia, Canada and America.