How Are Central Banks Buying Gold Today?
Central banks around the world continue to increase their gold reserves, supporting the price of the precious metal amid global economic uncertainty. In the first quarter of 2025, central banks added approximately 244 tons of gold, with the largest purchases coming from the National Bank of Poland (~49 tons) and the People's Bank of China (~13 tons). China's total gold reserves now stand at 2,292 tons.
In August 2025, global central banks added approximately 19 tons of gold. A World Gold Council (WGC) survey showed that 95% of central banks planned to increase their gold reserves in the next 12 months, confirming gold's role as a primary hedge against inflation and geopolitical risks.
On the physical demand side, trends in Asia are mixed. In China, gold withdrawals from the Shanghai Exchange (SGE) in the first half of 2025 were recorded at 678 tons, down 18% compared to the same period last year and 22% below the 10-year average. Despite slowing retail demand, physical gold prices in China remain high, especially for institutional investors.
Meanwhile, in India, high gold prices and the depreciation of the rupee have temporarily curbed retail purchases. However, gold imports have increased by around 100 tons in the past three months, driven by the festival season, weddings, and improving rural economic conditions.
Analysts believe that the combination of active central bank buying and strong physical demand in several countries remains the main factor supporting global gold prices. Although slowing demand in China has somewhat limited the potential for further gains, safe-haven sentiment and expectations of looser monetary policy continue to support this precious metal.
Source: Newsmaker.id
