Oil: Central bank Gold buying slows in April - ING

Central banks added a net 12 tonnes of Gold to global Gold reserves in April, 12% lower than the previous month and below the 12-month average of 28 tonnes, according to the latest data from the World Gold Council. Although central banks are still buying Gold, the pace has slowed as prices hit record highs. April marked the second consecutive month of slower accumulation, ING's FX analyst Francesco Pesole notes

Central banks are likely to add more Gold to their reserves

"Gold prices are up around 27% so far this year, after peaking at a record $3,500/oz in April. The rise is being driven by the global trade war, geopolitical risks, and central banks adding to their reserves. In the first quarter, central banks bought 244 tonnes of Gold."

"Poland remains the leading buyer, both in April and year-to-date. In April, the National Bank of Poland added another 12 tonnes to its reserves, lifting them to 509 tonnes. This is higher than Gold reserves at the European Central Bank, which stand at 507 tonnes."

"Despite the slowdown in purchases, central banks are likely to continue to add Gold to their reserves, given the uncertain economic environment and the efforts to diversify away from the US dollar."