Mumbai, October 30: For the first time since 2010, global central banks have sold gold. According to a report by the World Gold Council (WGC), revealed that net sales by central banks stood at 12 tonnes in the third quarter from July-September. However, in the third quarter in 2019, these banks purchased 141.9 tonnes of the precious metal.

Gold producing nations like Uzbekistan and Turkey pushed for the selling of the metal. It led to a jump in gross sales of 78.9 tonnes in the third quarter. Even Russia’s central bank reported its first sale in almost 13 years, reported the Live Mint.

According to economic experts, fiscal stress has been increased due to COVID-19 pandemic, and counties will roll out fiscal support. If central banks of other countries also follow the same suit, the conditions will become unfavourable for gold. Jewellers Betting Big on Dussehra, Expect 65 Pc of Total Business This Festival Season.

“Central banks turning net sellers may impact gold prices in the short term. That, coupled with the uncertainty around the US elections and fund re-balancing which typically happens towards the end of the year, may lead to some profit-booking in precious metals,” reported Live Mint quoting Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking Ltd. Gold Loan NBFCs to Witness 15-18% Growth in FY21: Crisil.

According to the WGC report, six central banks increased their gold reserves in the September quarter by a tonne or even more. Banks of the United Arab Emirates, India, Qatar, Kyrgyz Republic, Kazakhstan, and Cambodia are net buyers of gold during the quarter.

Meanwhile, demand for gold globally dropped 19 per cent during the July-September quarter to 892.3 tonne, largely due to weak consumer demand amid the pandemic, said World Gold Council. So far in 2020, the demand stood at 2,972.1 tonnes, around 10 per cent below the same period of 2019.

(The above story first appeared on LatestLY on Oct 30, 2020 04:37 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).