TL;DR : In August 2025, central banks around the world bought 15 tonnes of gold after no changes in July. Kazakhstan led the purchases. Banks are using gold to protect against inflation, political risks, and the falling value of the US dollar.
Key Points:
- Gold Purchases Resume in August 2025:
- Central banks globally added a net 15 tonnes of gold to their reserves in August 2025, according to the World Gold Council using IMF data.
- This follows zero net purchases in July and is consistent with March-June monthly buying levels.
- Top Buyers:
- Kazakhstan: +8 tonnes (sixth month of buying), now holds 316 tonnes.
- Poland: +4 tonnes; remains 2025’s largest buyer (71 tonnes YTD).
- Turkey and Bulgaria: +2 tonnes each. Bulgaria’s highest monthly increase since 1997.
- China: +2 tonnes; 10th consecutive monthly increase, total now over 2,300 tonnes.
- Others: India, Uzbekistan, and minor purchases from Azerbaijan and El Salvador.
- Sellers:
- Russia: Sold 3 tonnes (likely for coin production).
- Indonesia: Sold 2 tonnes.
- No major net selling reported from other central banks.
- Gold Price Impact:
- Gold price rose 48% YTD, nearing $3,900/oz by early October.
- WGC noted price surge may be “a constraint on the level of buying”, but not a sign of falling interest.
Strategic Reasons for Buying:
- Central banks aim to diversify reserves, reduce reliance on the US dollar, and protect against inflation and geopolitical risks.
- WGC’s June 2025 survey: 95% of central banks expect global gold reserves to rise in the next year; 43% plan to increase their own.
Outlook:
- Full Q3 data expected October 30.
- WGC forecasts 800-1,000 tonnes of total central bank gold buying for 2025.
- Poland may raise gold to 30% of its reserves, signaling more future buying.