Central banks around the world recorded a sharp rise in their gold reserves during September 2025, reflecting the ongoing global trend of diversifying assets away from the U.S. dollar and reinforcing safe-haven holdings amid financial market turbulence.
Purchases Hit Highest Monthly Level of 2025
According to data from the World Gold Council (WGC), net central bank gold purchases reached approximately 39 tonnes in September — the highest monthly total so far in 2025, marking an 80% increase compared to August.
This surge continues the strong buying trend by official monetary institutions that began in 2022, at a time when global market volatility and renewed geopolitical risks have come back into focus.
Strong Growth in Official Demand During Q3
During the third quarter, total net purchases amounted to about 220 tonnes, up 28% from the previous quarter and 6% higher than the five-year average for the same period.
From January through September 2025, central banks collectively purchased around 634 tonnes, a figure below the record levels of the past three years but still well above the previous decade’s annual average of 400–500 tonnes.
Top Buyers and Sellers
Brazil led the list of buyers, adding roughly 15 tonnes to its reserves — its largest monthly increase in more than a decade.
Kazakhstan continued its steady accumulation policy, adding around 8 tonnes in September, marking seven consecutive months of purchases.
Guatemala joined the list of buyers for the first time in years, increasing its reserves by approximately 6 tonnes.
On the other hand, Uzbekistan was virtually the only notable seller, reducing its holdings by about 4 tonnes during the month.
Strategic, Not Tactical, Moves
The World Gold Council noted that the current pace of buying reflects a long-term strategic trend, rather than a short-term response to price fluctuations.
Even as gold approached $4,000 per ounce in October, central banks continued to expand their reserves — signaling that their decisions are not driven by price speculation, but by portfolio restructuring aimed at maintaining value stability and risk diversification.
Drivers Behind Continued Buying
Diversification of reserves and reduced dependence on the U.S. dollar.
Hedging against inflation and declining confidence in sovereign bonds of major economies.
Geopolitical tensions prompting central banks to increase their holdings of safe assets.
Monetary shifts, including higher interest rates and slowing global growth.
Implications for Global and Local Markets
Experts emphasize that this sustained trend could tighten official gold supply, thereby supporting global prices and impacting procurement costs for jewelers and traders.
It may also encourage individual investors and hedge funds to maintain exposure to gold as a store of value amid volatile stock and currency markets.
As 2025 progresses, the pattern remains consistent with recent years — continued official demand, albeit at a slightly slower pace.
The final quarter is expected to see renewed activity, particularly as emerging economies move to bolster their gold reserves in anticipation of potential pressure on their local currencies or U.S. dollar holdings.
Gold thus continues to affirm its position as a strategic asset within official reserves, with central banks emerging as key players sustaining global demand. Meanwhile, prices remain influenced by a dual dynamic of a weaker dollar, robust official demand, and persistent geopolitical uncertainties.
Follow the latest news on Google News
