Central Bank Buying & De-dollarization Remain Structural Support
Key Questions
How much gold have central banks been buying recently?
Central banks purchased a record 245 tonnes in Q1 according to the WGC, with the PBOC adding 8.1 tonnes in April for its 18th consecutive month of buying.
What role does de-dollarization play in supporting gold prices?
Deutsche Bank notes a structural shift by central banks away from USD reserves toward gold. This trend, combined with repatriation of gold holdings, provides long-term underlying support.
Are ETF inflows still supporting the gold market?
Yes, global gold ETF inflows reached $6.6 billion in April, reinforcing demand alongside central bank purchases despite the recent price correction.
Does central bank buying still offer support after gold's recent drop?
The structural floor from central bank demand remains intact. This encourages dip-buying around the 4200 level even as short-term momentum has turned bearish.
What does the latest data suggest about future central bank gold demand?
Reports indicate continued strong appetite, with many central banks repatriating reserves and increasing allocations to gold as a strategic asset amid ongoing de-dollarization efforts.
Q1 WGC record 245t CB demand, PBOC 18th consecutive monthly purchase (+8.1t Apr), and global ETF inflows ($6.6B Apr) continue to underpin gold. Deutsche Bank reports CB shift from USD to gold. This long-term floor is intact despite the recent correction, reinforcing dip-buying at 4200.