The Central Bank of the United Arab Emirates (CBUAE) has reported that the value of its gold reserves reached AED20.619 billion ($5.61 billion) by the end of May 2024, marking a year-over-year (YoY) growth of 19.7 percent from AED17.219 billion ($4.68 billion) in May 2023.
According to the CBUAE’s Monthly Statistical Bulletin – Banking & Monetary Statistics for May 2024, the central bank’s gold reserves increased by 1.3 percent on a monthly basis, rising from AED20.36 billion ($5.54 billion) in April 2024. This represents a YoY increase of around 12 percent from the AED18.147 billion recorded in April 2023.
The UAE’s gold reserves have seen significant growth in recent years. The reserves stood at AED12.862 billion by the end of 2020, up from AED4.44 billion at the end of 2019, and AED1.134 billion in 2018.
Strong Q2 gold demand
Total global gold demand increased 4 percent year-on-year to 1,258 tons, recent data showed marking the strongest Q2 on record.
Moreover, total demand was supported by healthy over-the-counter (OTC) transactions, up 53 percent year-on-year at 329 tons, the World Gold Council’s Q2 2024 Gold Demand Trends report said.
Additionally, increased OTC demand, continued buying from central banks and a slowdown in ETF outflows drove record-high gold prices in Q2. The gold price averaged $2,338/oz, 18 percent higher year-on-year, reaching a record of $2,427/oz during the quarter.
Central banks and official institutions increased global gold holdings by 183 tons, slowing down from the previous quarter, but still reflecting a 6 percent increase year-on-year.
Moreover, a World Gold Council annual central bank survey confirmed that reserve managers believe gold allocations will continue to rise over the next 12 months, driven by the need for portfolio protection and diversification in a complex economic and geopolitical environment.
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