Central Banks Buy 41 Tonnes of Gold While Prices Log a 4th Straight Monthly Loss

Gold weakened sharply, falling 11.7% in June and marking a fourth straight monthly decline, as traders priced in a more hawkish Fed and persistent macro uncertainty. Despite the selloff, central bank demand remained robust: World Gold Council data showed net purchases of 41 tonnes in May. Poland was the largest buyer, adding 18 tonnes, while China extended its buying streak to 20 consecutive months with a 10-tonne purchase. Other notable buyers included Singapore, Uzbekistan and Kazakhstan. The article suggests the short-term price pressure has not deterred official-sector accumulation, but the next monthly data release will be important to see whether central banks maintained their appetite after gold’s steep June drop. Overall, the piece points to a bearish price backdrop for gold in the near term, partially offset by supportive long-term reserve diversification demand from central banks.