Singapore adds to its gold pile for the first time in decades

[SINGAPORE] Singapore increased its gold reserves by about 20 per cent earlier this year, in a largely under-the-radar move that expanded its holdings for the first time in decades.

The purchases, which totalled about 26.3 tons, took place over May and June, according to data from the International Reserves and Foreign Currency Liquidity reports of the Monetary Authority of Singapore (MAS). The move came to wider prominence when it was picked up in the International Monetary Fund's monthly update, which shows it was the first increase in figures dating back to 2000.

MAS didn't disclose how much it paid for the bullion, but at today's price, that would be about US$1.5 billion. The authority didn't immediately respond to an e-mail seeking comment.

The central bank may have preferred to not draw attention to the amount of gold in its international reserves as this might encourage foreign-exchange markets to view the purchase as a move that strengthens the city-state's reserve position and potentially put upward pressure on its exchange rate, wrote Ronan Manly in a blog post. He is a precious metals analyst at Singapore dealer BullionStar.

BLOOMBERG