After a positive increase in gold holdings in the first half of 2020, the demand for gold purchases by the central bank became more volatile in the second half of the year, fluctuating back and forth between monthly net purchases and net sales. This is clearly different from the continued trend of gold purchases over the years, in part because the Russian central bank announced that it would stop buying gold from April. Nonetheless, central banks are expected to maintain the pace of net gold purchases in 2020 (though well below the record levels of 2018 and 2019). We don't expect much change in 2021. There is good reason for central banks to continue to favor gold as part of their foreign exchange reserves, and the attractiveness of gold will continue to be maintained in an environment of low interest rates.