Glenys Sim and Phoebe Sedgman Singapore
THE NETHERLANDS added to its gold reserves for the first time since 1998 as the ninth-biggest holder boosted assets to the highest in seven years, while Russia bought for a ninth month, International Monetary Fund (IMF) data show.
Bullion reserves in the Netherlands climbed to 20 million ounces in December, the highest since 2007, after being unchanged at 19.7 million ounces from December 2008 through November, the IMF’s website showed yesterday.
Russia, with the fifth-biggest hoard, held 38.8 million ounces last month, the most in at least two decades, the data show.
Central banks globally are adding gold to reserves after reducing holdings for about two decades from the late 1980s as they seek to diversify assets, according to Oversea-Chinese Banking.
Worldwide purchases would probably be 400 tons to 500 tons in 2014, the World Gold Council said in November. Gold rose for the first time in four months last month as signs of slowing economic growth spurred haven demand.
“Central bank purchases may have lent some support to gold prices in the past, but it is likely short-lived,” said Barnabas Gan, an economist at OCBC in Singapore.
“The most important point for gold is that speculative demand will likely stay tepid in 2015 given that a firmer dollar, higher interest rate environment and a rosier US economy will depress safe-haven demand,” he said.
Bullion held in exchange-traded products backed by the metal have risen 3.1 percent this year after sliding for two years as concern global growth may be faltering boosted demand.
Gold for immediate delivery traded at $1 281.46 (R14 660) an ounce at 9.14am in London, according to Bloomberg.
– Bloomberg