Gold has been falling for nearly a month, but central banks are still buying
Gold prices haven’t been doing too well lately.
Domestic gold prices have fallen from over 900 to around 890, with buyback prices even lower, at just over 880. International gold prices briefly dropped to just over $4,100, their lowest level in two months.
You’d think everyone would be panicking after a drop like that. But take a look at what central banks are doing—
China’s central bank bought another 23 tons of gold in September, marking its 23rd consecutive month of increasing its holdings. It bought more in a single month than ever before.
What does that tell you? The lower gold prices fall, the more eagerly central banks buy.
Put simply, central banks look at things differently from ordinary people. Ordinary people look at whether prices went up or down today; central banks look at whether an asset is safe. Gold isn’t backed by any country’s credit, carries no default risk, and when you put it somewhere, it stays there.
And it’s not just China. The central banks of Poland, Turkey, and Kazakhstan are buying too. Global gold ETFs attracted $31 billion in the third quarter, a record.
Prices are falling on one side, while money is flowing in on the other.
This scene feels pretty familiar. It’s the same principle as in crypto: when prices crash, the real whales don’t run—they buy the dip.
Retail investors watch the charts; central banks are looking ten years ahead. $XAU #美联储纪要聚焦10月暂停加息
Gold prices haven’t been doing too well lately.
Domestic gold prices have fallen from over 900 to around 890, with buyback prices even lower, at just over 880. International gold prices briefly dropped to just over $4,100, their lowest level in two months.
You’d think everyone would be panicking after a drop like that. But take a look at what central banks are doing—
China’s central bank bought another 23 tons of gold in September, marking its 23rd consecutive month of increasing its holdings. It bought more in a single month than ever before.
What does that tell you? The lower gold prices fall, the more eagerly central banks buy.
Put simply, central banks look at things differently from ordinary people. Ordinary people look at whether prices went up or down today; central banks look at whether an asset is safe. Gold isn’t backed by any country’s credit, carries no default risk, and when you put it somewhere, it stays there.
And it’s not just China. The central banks of Poland, Turkey, and Kazakhstan are buying too. Global gold ETFs attracted $31 billion in the third quarter, a record.
Prices are falling on one side, while money is flowing in on the other.
This scene feels pretty familiar. It’s the same principle as in crypto: when prices crash, the real whales don’t run—they buy the dip.
Retail investors watch the charts; central banks are looking ten years ahead. $XAU #美联储纪要聚焦10月暂停加息