The Monetary Authority of Singapore has introduced a new gold vaulting service designed for foreign central banks. The facility has a storage capacity of 500 tonnes. To support this initiative, Singapore plans to implement tax exemptions for wholesale gold services, including refining and vaulting. A gold clearing system is scheduled to commence live trading in the first quarter of 2027.
Central banks continue to increase their gold reserves despite price fluctuations. According to World Gold Council data, central banks purchased 321 tonnes of gold in the third quarter, exceeding the five-year quarterly average of 227 tonnes. In October, the People's Bank of China added 25.8 tonnes to its holdings, marking its largest monthly increase in three years.
Gold traded at $4,043.27 on Wednesday, reflecting a decline of over 6% in 2026 and sitting approximately 28% below the January peak of $5,608.35. Market participants anticipate a Federal Reserve rate hike in December, which influences the cost of holding non-yielding assets like gold. Analysts note that while central bank demand often rises when prices fall, this correlation remains unstable.
