Central banks continued to bolster their gold reserves in October, taking advantage of lower prices to expand official holdings. China led the charge, adding 26 tonnes of gold to its reserves, bringing its total to 2,435 tonnes, just 2 tonnes behind France’s reserves. Krishan Gopaul, Senior Analyst at the World Gold Council, highlighted China’s dominance but noted other active buyers, including the Czech National Bank, which purchased 2.5 tonnes, and the Central Bank of the Republic of Uzbekistan, which bought 7 tonnes.
The National Bank of Poland also made significant strides, reaching its target of 700 tonnes in official reserves. Governor Adam Glapinski suggested that further purchases could follow, stating, “I see no reason why we should stop buying gold.” The central bank acquired 27 tonnes in October alone.
October’s buying spree followed a strong third quarter, during which central banks purchased 321 tonnes of gold, a 42% increase compared to the same period last year. The World Gold Council expects this trend to continue, with central banks remaining active participants in the gold market. However, analysts cautioned that demand remains sensitive to price fluctuations, which may provide some stability but not a firm floor for gold prices.