Central bank increase gold buying for the first time since 2013. Asian countries seek to diversify their reserves.
Net purchases of gold by central bank rose from 375tons in 2017 to 450tons in 2018 according to consultancy metals focus ltd.
A senior analyst at London-based metal focus Junlu Liang said despite the purchases by a number of central banks in recent years, the share of total reserves that their gold holdings account for remains arguably low, especially when compared to that seen across western countries.
However, the central Bank of Poland and Hungary have surprised the market by adding to their gold holdings for the first time in many years.
Whereas Hungary increase its gold reserves to be one-off strategic purchase.
Poland has made incremental additions for the last three months.
Russia has been the biggest driver of this year’s gain whose central bank has added about 20tons on average of every month.