In June 2024, Uzbekistan emerged as one of the world's leading gold buyers, according to a report by the World Gold Council. Despite losing out to the Philippines and Thailand in gold sales earlier this year, Uzbekistan's Central Bank demonstrated notable activity in the gold market, purchasing substantial quantities of the precious metal.
Gold Purchases in June 2024
The world's central banks collectively increased their public gold reserves by 12 tons in June, with total gold purchases amounting to 31 tons and sales totaling 18 tons. The Central Bank of Uzbekistan, alongside the Reserve Bank of India, led the growth in gold reserves, each acquiring 9 tons of gold.
Other notable buyers included the National Bank of Poland, which purchased 4 tons, the Central Bank of Qatar with 3 tons, and both the Central Bank of Jordan and the National Bank of the Czech Republic, which added 2 tons each to their reserves. Additionally, the Turkish regulator acquired an additional ton of gold.
Conversely, the Monetary Authority of Singapore was the main seller, reducing its gold reserves by 12 tons. The National Bank of Kazakhstan also reported a decrease in its gold reserves by 6 tons.
Year-to-Date Gold Sales
Since the beginning of 2024, Uzbekistan has sold a net volume of 7 tons of gold, ranking third in gold sales behind Thailand, which sold 10 tons, and the Philippines, which sold 25 tons. The primary buyers during this period were Turkey, India, and China, indicating a robust demand for gold in these countries.
Domestic Gold Purchases
The Central Bank of Uzbekistan also reported domestic gold purchases in the second quarter of 2024. The bank bought gold from local producers worth $2.1bn, marking an 18.7% increase in purchases for the quarter. This surge in domestic gold acquisitions can be attributed to prevailing "external economic conditions and geopolitical conflicts," as stated in the Central Bank's report.
As of July 1, 2024, Uzbekistan's international reserves stood at $36.3 bn. Notably, three-quarters of this amount comprised gold reserves, whose value has reached a record high since the publication of data in 2018.
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