from Gold Core:
When gold was weak during May to July of 2012, central banks actively bought nearly 71 tonnes.
Russia and Kazakhstan’s bought 12.2 and 1.5 tonnes in January, but until the IMF reports official activity, may help the very poor sentiment towards gold today. Central banks utilize gold bullion to diversify their holdings and limit their foreign exchange exposure.
South Korea’s FX reserves ranked 7th in the world at the end of January. However, their gold reserves remain a tiny fraction of their overall foreign exchange reserves which were valued at $327.4 billion in February.
“The Bank of Korea’s gold buying is part of the long-term diversification of currencies and assets in foreign-exchange reserves,” it said in the statement. “It is of no great importance to try to gauge if it’s profitable or not based on short-term price swings.”