Gold prices are hitting new lifetime highs every week, but the rally is not deterring central banks around the world from stacking up gold to diversify foreign exchange reserves away from US debt.
Data from the World Gold Council , compiled using International Monetary Fund and central bank statistics, revealed that global central banks made net additions of 15 tonnes to their gold reserves in August. The National Bank of Kazakhstan emerged as the primary gold purchaser during August.
RBI not buying as much gold in 2025 as 2024
The Reserve Bank of India (RBI) did not buy gold for the second consecutive month in August. In fact, till August-end this year, RBI bought gold in only three out of eight months in 2025. This is a marked departure from the regular monthly gold purchases observed in 2024, according to an ET report.
According to WGC, RBI's total purchases reached 3.8 tonnes in the January-August 2025 period, significantly lower than the 45.4 tonnes recorded during the corresponding period last year.
As of August 29, RBI's gold holdings remained at 879.98 tonnes. The latest figures indicate that gold constitutes 13.6% of RBI's foreign exchange reserves as of September 26, an increase from 9.3% the previous year when total reserves reached their peak.
According to WGC, August's overall figures aligned with the monthly net acquisitions by global central banks from March through June. This indicates a resumption of purchasing activity following a static month in July. The July figures underwent a downward revision from the initial estimate of over 10 tonnes after Bank Indonesia disclosed an 11-tonne disposal.
Gold valuations reached $3,429/oz on August 31, showing a 31% increase year-on-year.
The WGC noted that the current gold price surge, which has established several record highs this year, continues to restrict central bank purchasing levels. This might also influence some tactical selling decisions.
"But the recent slowdown in buying does not necessarily signal that central banks as a whole are losing interest in gold," it added.
According to Canara Bank's chief economist Madhavankutty G, there is now clearer insight into the Federal Reserve's rate path, with additional rate reductions anticipated. The demand is expected to increase, although this relationship has become less pronounced compared to historical patterns.
"Global uncertainties have also not ebbed which supports gold. Moreover, we must keep in mind that the quantity of gold mined remains limited while demand remains steady. So central banks will benefit from further up move in gold prices, which will bolster their reserves," he added.
Data from the World Gold Council , compiled using International Monetary Fund and central bank statistics, revealed that global central banks made net additions of 15 tonnes to their gold reserves in August. The National Bank of Kazakhstan emerged as the primary gold purchaser during August.
RBI not buying as much gold in 2025 as 2024
The Reserve Bank of India (RBI) did not buy gold for the second consecutive month in August. In fact, till August-end this year, RBI bought gold in only three out of eight months in 2025. This is a marked departure from the regular monthly gold purchases observed in 2024, according to an ET report.
According to WGC, RBI's total purchases reached 3.8 tonnes in the January-August 2025 period, significantly lower than the 45.4 tonnes recorded during the corresponding period last year.
As of August 29, RBI's gold holdings remained at 879.98 tonnes. The latest figures indicate that gold constitutes 13.6% of RBI's foreign exchange reserves as of September 26, an increase from 9.3% the previous year when total reserves reached their peak.
According to WGC, August's overall figures aligned with the monthly net acquisitions by global central banks from March through June. This indicates a resumption of purchasing activity following a static month in July. The July figures underwent a downward revision from the initial estimate of over 10 tonnes after Bank Indonesia disclosed an 11-tonne disposal.
Gold valuations reached $3,429/oz on August 31, showing a 31% increase year-on-year.
The WGC noted that the current gold price surge, which has established several record highs this year, continues to restrict central bank purchasing levels. This might also influence some tactical selling decisions.
"But the recent slowdown in buying does not necessarily signal that central banks as a whole are losing interest in gold," it added.
According to Canara Bank's chief economist Madhavankutty G, there is now clearer insight into the Federal Reserve's rate path, with additional rate reductions anticipated. The demand is expected to increase, although this relationship has become less pronounced compared to historical patterns.
"Global uncertainties have also not ebbed which supports gold. Moreover, we must keep in mind that the quantity of gold mined remains limited while demand remains steady. So central banks will benefit from further up move in gold prices, which will bolster their reserves," he added.
You may also like
Big Brother chaos as two housemates warned over offensive language in just two days
Jordan Henderson hits out at England critics as Thomas Tuchel backs him up
Keir Starmer refuses to send birthday wishes to despot Vladimir Putin
Anthony Gordon reveals what Marcus Rashford is REALLY like with verdict on England rival
Keir Starmer defends government over Chinese spy case collapse
