Central Banks Continue Gold Buying Spree in August

Central banks around the world continued their gold-buying streak in August, adding a net 39 tonnes to their reserves. This brings the year-to-date total to approximately 170 tonnes, underscoring a sustained trend of gold accumulation.

The People’s Bank of China remained the top buyer, increasing its reserves by 20 tonnes in August, following a similar purchase in July. This marks the 22nd consecutive month of reported gold buying for China, with official reserves now at 2,387 tonnes, about 9% of the country’s total reserves. However, reports suggest China may hold significantly more gold off the books, potentially over 5,000 tonnes, more than twice the publicly disclosed amount. Analysts like Goldman Sachs and BMO Capital have noted this discrepancy, with some predicting China’s reserves could surpass the U.S.’s within five years.

Poland also stood out as a major buyer, adding 8 tonnes in August and 98 tonnes year-to-date, now holding 648 tonnes. Uzbekistan, after selling one tonne in July, reversed course in August with an 8-tonne purchase, while Kazakhstan added 7 tonnes. The Czech Republic continued its steady approach, buying 2 tonnes for the 42nd straight month. Turkey, which had sold gold for three consecutive months, returned to buying with a 3-tonne increase. Meanwhile, Bolivia and Ghana each reported a 1-tonne increase.

Russia was the only notable seller, reducing its reserves by 6 tonnes in August, bringing its year-to-date sales to 56 tonnes. Jordan also sold 3 tonnes in August, following a 1-tonne sale in July. Despite a moderation in central bank gold buying in 2025, with net purchases down 21% year-on-year, the total of 863.3 tonnes remained well above the 2010-2021 average of 473 tonnes. The World Gold Council noted that higher gold prices may have prompted a more cautious approach, but central bankers still expect reserves to grow over the next 12 months.