South Korea's central bank to buy gold from domestic producers

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SEOUL, Aug 3 : South Korea's central bank will buy gold from local producers to diversify its sources of supply and increase its holdings of the precious metal, it said on Monday.

The Bank of Korea said it has established a framework for domestic gold purchases with local producers, Korea Exchange and Korea Securities Depository.

It will buy gold from domestic producers at international market prices via transactions, payment and deposit systems of KRX and KSD, the bank said.

The purchases will have a limited impact on trading prices of gold in the country, since the bank plans to buy gold intended for exports only at contract prices, it added.

The bank said the purchases would support its management of foreign reserves. They mark the central bank's first domestic gold purchases in 13 years, according to local media reports.

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