Central Banks Vigorously Resume Gold Purchases in August After Temporary Halt in July

Central banks significantly resumed their gold purchasing operations in August after a pause in July. This was led by the National Bank of Kazakhstan, with both Bulgaria and El Salvador joining the list of buyers in 2025, according to Krishan Gopaul, Senior Analyst for EMEA at the World Gold Council (WGC).

In the latest WGC update on Central Bank Reserves, Gopaul stated:"Central banks added a net 15 tonnes to global gold reserves in August, based on data announced by both the International Monetary Fund and the respective central banks."

He clarified that this figure is roughly in line with the average net monthly purchases recorded between March and June, signaling a return to buying activity after global reserves remained unchanged in July (July’s estimate was adjusted from +10 tonnes to zero following the Bank of Indonesia's announcement of an 11-tonne sale).

He added:"As we've mentioned before, the significant rise in gold prices this year, which has hit new record highs multiple times, may still be a factor pressuring the volume of central bank purchases, and could also be a driver for some tactical selling. However, the recent slowdown in buying does not necessarily mean that central banks are losing interest in gold. On the contrary, recent developments confirm that banks remain keen to increase their exposure to gold."

Key Buyers in August:The National Bank of Kazakhstan added 8 tonnes of gold, continuing its buying streak for the sixth consecutive month, raising its reserves to 316 tonnes, an increase of 32 tonnes since the end of 2024.

The Bulgarian National Bank increased its reserves by 2 tonnes, the largest monthly increase since June 1997 (when it bought 8 tonnes), bringing its total reserves to 43 tonnes. The report noted that as Bulgaria joins the Eurozone in January 2026, it might transfer some gold to the European Central Bank as part of the accession procedures.

The Central Bank of Turkey added 2 tonnes of gold, raising its official year-to-date reserves by 21 tonnes to 639 tonnes.

The People's Bank of China continued buying for the tenth consecutive month, adding 2 tonnes, raising its reserves to over 2,300 tonnes, which represents about 7% of its total international reserves.

The Central Bank of Uzbekistan also added 2 tonnes during the month, bringing its reserves to 366 tonnes, although this is still 17 tonnes lower than at the end of 2024.

The Czech National Bank steadily accumulated gold, adding another 2 tonnes, bringing its total reserves to 65 tonnes, continuing its monthly buying streak for 30 consecutive months, as part of a plan to raise reserves to 100 tonnes by 2028.

The Bank of Ghana also added 2 tonnes, raising its year-to-date purchases to 5 tonnes, with total reserves reaching 36 tonnes.

Gopaul pointed out that the Central Bank of Russia (3 tonnes) and the Bank of Indonesia (2 tonnes) were the only sellers in August, explaining that Russia's reduction in reserves is likely related to its coin minting program.

Poland Prepares for a New Wave of Buying:The report clarified that the National Bank of Poland (NBP), the largest gold buyer last year, does not intend to stop. In September, it confirmed it would raise the target proportion of gold within its international reserves from 20% to 30%.

The bank had reached its previous goal earlier this year due to significant purchases and rising prices, and has since kept reserves stable at 515 tonnes by the end of August, after adding 67 tonnes in 2025, remaining the largest gold buyer this year. The NBP indicated that the volume and speed of purchases will depend on market conditions.

El Salvador Joins the Buyers' List: The report stated that the Central Bank of El Salvador increased its gold reserves in September by 13,999 ounces (less than half a tonne), bringing its total reserves to nearly 2 tonnes. The bank explained that this step is part of a "long-term positioning to achieve a precautionary balance in the components of international reserves."