ING commodity strategists Warren Patterson and Ewa Manthey said gold ticked up
on Tuesday as weaker oil and a bond-market rally eased inflation concerns and
trimmed market expectations for further rate hikes. World Gold Council data show
central banks were net buyers of 39t in August, bringing year-to-date purchases
to 170t; Poland and Uzbekistan added 8t each. Turkey returned to net buying in
August, acquiring 3t after three months of net sales, while Kazakhstan, the
Czech Republic, Bolivia and Ghana also bought; Russia reduced holdings by 6t.
Despite elevated prices, official demand remains resilient and is driven by
long-term reserve diversification rather than short-term market moves, and
continued buying by Poland and several emerging-market central banks may remain
an important support for the gold market in coming months.
