India ranks 10th in official gold holdings, with 654.9 tons

With Q2 gold demand down 11% yoy to 1,015.7t, demand for the first half year was 6% weaker at 2,076t. The pandemic was again the main influence on the gold market in Q2, severely curtailing consumer demand while providing support for investment. Central banks buying slowed again in Q2, although the comparison is with a record Q2 2019. The sector added a net 233t of gold in H1. Buying has become more concentrated, with fewer banks adding to reserves so far in 2020.

Gold plays an important part in central banks’ reserves management, and they are significant holders of gold. This gold reserve data – compiled using the IMF’s International Financial Statistics (IFS) – tracks central banks’ reported purchases and sales along with gold as a percentage of their international reserves.

India ranks 10th in official gold holdings, with 654.9 tons of gold, constituting 7.5% of total reserves. As a country, United States leads the table, with 8,133.5 tons, followed by Germany (3,363.6 t). Euro Area (including European Central Bank-ECB) lead the table with 10,773.3 tons of gold, as per the World Gold Council. Central banks’ net purchases totalled 39.8t in May, in line with net purchases in March and April, and above the monthly average of 35 tons over the first 4 months of this year. On a ytd basis, IMF data shows that net purchases are now 181 tons, 31% lower than the same period in 2019. Six central banks have now decreased their gold reserves, totalling 31.8 tons.