Central banks added a total of 228 tonnes of gold to their reserves in the March quarter, adding to “sustained and significant” purchases in 2022. According to the World Gold Council’s latest update, central banks added 1078 tonnes to their reserves last year – more than double their purchases of 450 tonnes in 2021 and a record for annual demand. The council said the purchases demonstrated gold’s ongoing role as an internationally recognised store of value, especially during periods of volatility and heightened risk. The Reserve Bank of Australia was an outlier, keeping its 79.8 tonnes of gold holdings unchanged during the quarter. The RBA has not changed its gold holdings for many years. The gold price has performed strongly in recent months, rising from a trading range around US$1650 an ounce in October and November last year to a record of US$2052 an ounce earlier this month. It is currently trading around US$2020 an ounce. As a result of the high price and inflationary pressures jewellery demand was down in last year and in the March quarter this year. Demand from the technology sector was also down. One market where consumer demand bucked the trend was China, where the end of COVID lockdowns came later than in other countries and Chinese shoppers went on a spree last year. Investor demand for bars and coins was up 4 per cent over the past year, while demand from exchange traded funds and similar investment products that hold physical gold was down. The council estimates the central bank buying in 2023 will match 2022, with surveys of central banks indicating that their intentions are to keep building reserves. It said four central banks have been behind most of the increase in demand. The Monetary Authority of Singapore was the biggest buyer during the Match quarter, adding 69 tonnes to its reserves. The People’s Bank of China purchased 58 tonnes in the March quarter and has added 120 tonnes to its reserves since November last year. The Turkish Central Bank and the Reserve Bank of India were the other big buyers.  Central banks in Uzbekistan, Kazakhstan, Cambodia and Tajikistan were notable sellers.