Russian Central Bank
- Global central banks were net sellers of 12.1 tons of gold (XAUUSD:CUR) in Q3 vs. net purchases of 141.9 tons a year earlier, according to the World Gold Council. The last quarter in which central banks were net sellers was Q4 of 2010.
- Among the sellers were Uzbekistan and Turkey, and Russia was a net seller for the first time in 13 years.
- Putting things in a bit of perspective, Q3's sales come following record purchases by central banks in 2018 and 2019. The sales come alongside record prices for gold, and also came at a time when a few governments were under some fiscal pressure thanks to the pandemic panic.
- Q3's sales were part of an overall slowing in bullion demand in Q3, which fell 19% year-over-year to the weakest since 2009. Jewelry demand, in particular, has been weak throughout 2020.
- Gold this morning is flat at $1,877 per ounce. It started Q3 at about $1,775, eventually rising to $2,100 in early August.
- Some related ETFs: GLD, IAU, PHYS, SGOL, UGLDF, BAR, UGL, GLDM, AAAU, GLDI