Central banks ramp up gold buying as reserves shift from US to London

Central bank gold purchases climbed sharply to an estimated 79 tonnes in August, up from 44 tonnes in July and far above the pre-2022 monthly average of 17 tonnes, according to Goldman Sachs. China drove the buying spree, acquiring an estimated 25 tonnes in August and extending its official purchasing streak to 23 consecutive months through September. Alongside heavy accumulation, reserve managers relocated physical bullion to Europe, with the Federal Reserve Bank of New York seeing holdings decline by 40 tonnes while the Bank of England gained 46 tonnes, bolstered by an 86-tonne transfer by the Dutch central bank.