Central bank Gold buying hit highest level of the year in September

Central bank gold buying hit the highest level of the year in September, with several new banks adding to their reserves.

Globally, central banks officially added a net 39 tonnes of gold to their holdings in September. That was up 79 percent month-on-month and was above the 12-month average of 27 tonnes.

A strong September drove official third-quarter central bank gold purchases to a net 220 tonnes. That was up 28 percent from Q2 and 6 percent above the five-year third-quarter average. 

The World Gold Council said the pickup in central bank gold demand in Q3, despite record prices, “is evidence that central banks continue to add gold strategically, despite facing higher prices.”

So far in 2025, central banks have gobbled up 634 tonnes of gold based on official data. This is below the level through the same period over the last three years, but above the pre-2022 average of 400 to 500 tonnes. 

Brazil was the biggest buyer in September, adding 15 tonnes of gold to its reserves. It was the first reported increase in Brazil’s gold holdings since 2021. The Brazilian central bank now officially holds 145 tonnes of gold.

The National Bank of Kazakhstan continued adding gold to its holdings with an 8-tonne purchase. It was the seventh straight month of increasing Kazakh gold reserves. Kazakhstan was the biggest buyer in Q3, increasing its gold stockpile by 18 tonnes to 324 tonnes.  

The Bank of Guatemala was another new player in the market, adding 6 tonnes of gold to its reserves in September. That pushed the country’s gold holdings to 13 tonnes, representing a 91 percent increase.

The Central Bank of Turkey increased its holdings by 2 tonnes in September. The Turkish central bank has been a net purchaser for 28 consecutive months – since June 2023.

The Czech Central Bank has followed a similar strategy – growing its gold reserves at a slow, steady pace. It added another 2 tonnes in September, its 31st straight month of gold accumulation. The Czech Republic now holds 67 tonnes of gold. Czech officials say they plan to increase gold reserves to 100 tonnes by 2028.

China has reported an increase in its official reserves for 11 straight months, adding an additional tonne in September. The People’s Bank of China has increased its official holding by 399 tonnes in that span.

Total official Chinese gold reserves are now over 2,300 tonnes, making up around 7 percent of its total reserves.

Notice the emphasis on "official."

China is among the central banks that are likely to hold significantly more gold than they publicly disclose. As Jan Nieuwenhuijs has reported, the People's Bank of China is secretly buying large amounts of gold off the books. According to data parsed by the renowned Money Metals researcher, the Chinese central bank is currently sitting on more than 5,000 tonnes of monetary gold located in Beijing – more than TWICE what has been publicly admitted.

Ghana (1 tonne) and Russia (3 tonnes) also reported gold purchases in September.

Uzbekistan was the only notable seller in September, reducing its gold reserves by 4 tonnes. It is not uncommon for banks that buy from domestic production – such as Uzbekistan and Kazakhstan – to flip-flop between buying and selling. 

While Poland has not increased its gold reserves since May, it remains the biggest buyer of the year, having increased its reserves by over 67 tonnes. The country currently holds 515 tonnes of gold, accounting for 24 percent of total reserves. 

The central bank recently announced plans to target its gold holdings at 30 percent of total reserves, up from the previous 20 percent target. It achieved that goal earlier this year.

Meanwhile, South Korean central bank officials recently indicated they are considering increasing their gold holdings. The last time the Bank of Korea expanded its gold reserves was in 2013. The country currently holds around 104 tonnes of gold.

Despite the slowdown in central bank buying this year, the World Gold Council remains bullish.

“We maintain our view that central banks will continue to add gold to their reserves. Our Central Bank Gold Reserves Survey 2025 shows that respondents overwhelmingly (95 percent) expect global central bank gold reserves to increase over the next 12 months, while 43 percent believe that their own gold reserves will also increase over the same period. Notably, none of the respondents anticipate a decline in their gold reserves.”

On net, central banks officially increased their gold holdings by 1,044.6 tonnes in 2024. It was the 15th consecutive year of expanding gold reserves.

Last year was the third-largest expansion of central bank gold reserves on record, coming in just 6.2 tonnes lower than in 2023 and 91 tonnes lower than the all-time high set in 2022 (1,136 tonnes). 2022 was the highest level of net purchases on record, dating back to 1950, including since the suspension of dollar convertibility into gold in 1971.

To put that into context, central bank gold reserves increased by an average of just 473 tonnes annually between 2010 and 2021.

World Gold Council analysts said, “Central banks are likely to continue their buying spree,” calling central bank purchases “surprisingly resilient” given the rapid price increase.

The WGC has also noted that “diversification” with “a reduction of U.S. assets” is one of the factors driving central bank gold buying. In other words, de-dollarization.

“We don’t see an end to this narrative unless there is a material shift in geopolitical tensions. The IMF has downgraded growth prospects in the U.S. more than in other major economies, citing policy uncertainty. This suggests that other countries may have leverage in negotiations, although these typically last months and years, not weeks. Hence, we don’t expect any near-term resolutions.”