Global gold prices hit new record highs in 2025, yet central banks continue to increase their reserves. Analysts say the buying spree reflects a long-term strategy to diversify away from the U.S. dollar and safeguard national reserves amid global uncertainty.
Gold has once again broken new ground, with global prices surging past historic highs as central banks continue to strengthen their holdings.
According to Dow Jones Market Data, December gold futures (GCZ25) closed at $4,304.60 per ounce on October 16 — the highest level ever recorded on the Comex exchange. Year to date, gold has surged nearly 60%, marking one of the strongest annual performances in modern history.
Despite soaring prices, central banks around the world remain net buyers of gold. Data from the World Gold Council (WGC) released on October 3 showed that global central banks added 19 metric tons to their reserves in August, rebounding from a small decline the previous month.
“Central banks continue to be consistent and strategic buyers of gold, even at record prices,” said Joe Cavatoni, Senior Market Strategist at the WGC. “For many, this is about diversification, stability, and long-term confidence in their reserves.”
The global wave of gold accumulation is largely driven by central banks’ desire to diversify their foreign exchange reserves and reduce exposure to the U.S. dollar.
As the U.S. faces rising fiscal deficits, fluctuating interest rates, and a weaker dollar outlook, gold is seen as a reliable hedge and store of value.
“In an environment of shifting rate expectations and questions about the reliability of fiat currencies, gold remains a trusted, independent asset,” Cavatoni noted.
He described the trend as “structural, not cyclical,” signaling a lasting change in how nations view gold as part of their reserve strategies.
Tensions across the globe — from the Middle East and Eastern Europe to trade frictions between the U.S. and China — have eroded trust in the neutrality of the dollar.
Some governments fear that U.S.-based assets could be frozen under sanctions, pushing them to seek “sanction-proof” reserves.
“Many central banks are deliberately reducing their reliance on the U.S. dollar, reallocating into gold to ensure financial independence,” said Edmund Moy, former Director of the U.S. Mint and current Senior IRA Strategist at U.S. Money Reserve.
It’s not only investors who fear missing out. According to Adrian Ash, Director of Research at BullionVault:
“The strength of central-bank gold demand proves that even sovereign buyers aren’t immune to FOMO. They’re still eager to buy, even at record highs, believing prices could go higher still.”
According to the WGC, Poland, Kazakhstan, and China have led the charge in gold acquisitions this year:
🇵🇱 Poland has been the largest buyer so far in 2025, raising its gold share in total reserves to over 30%.
🇰🇿 Kazakhstan added about 8 metric tons of gold in August, bringing its total reserves above 420 tons.
🇨🇳 China has increased its gold reserves for 24 consecutive months as part of its strategy to support the yuan and reduce dollar dependence.
🇹🇷 Turkey and 🇨🇿 Czech Republic have also maintained steady purchases for over two years.
Meanwhile, the United States remains the world’s largest holder of gold reserves, with 8,133 tons stored at facilities in Fort Knox (Kentucky), West Point (New York), and Denver (Colorado), as well as a small amount at the New York Federal Reserve.
Moy explained that the U.S.’s vast holdings date back to President Franklin D. Roosevelt’s 1933 order requiring citizens to turn in gold coins, as well as payments made in gold by foreign nations during World War II.
While record-high prices could slow short-term purchases, analysts believe they won’t reverse the long-term buying trend.
The WGC emphasized that the latest data “does not indicate a loss of interest” from central banks, but rather reflects “measured, strategic accumulation.”
With global growth slowing and interest rates expected to ease, gold is solidifying its role as a strategic reserve asset.
“Some nations are seeking sanction-proof assets, others are hedging against fiscal instability,” Moy explained. “But the common thread is clear — gold is back at the center of national reserve policy.”
After decades in the shadows of fiat currencies, gold is reclaiming its strategic importance in global finance.
The continued buildup by central banks not only fuels record prices but also signals a broader shift in monetary power, as countries pursue de-dollarization to reduce reliance on the U.S. financial system.
“Central banks will remain major players in the gold market for the foreseeable future,” Moy said. “This isn’t a short-term trade — it’s a structural realignment of global reserves.”
1️⃣ Why are central banks buying gold even at record highs?
→ Because gold provides long-term stability and diversification, reducing exposure to the U.S. dollar and geopolitical risks.
2️⃣ How does central-bank buying affect gold prices?
→ Sustained purchases by sovereign buyers create strong underlying demand, keeping gold prices supported even during market corrections.
3️⃣ Which countries are leading gold purchases in 2025?
→ Poland, Kazakhstan, and China are among the most active buyers, according to the World Gold Council.
4️⃣ Will this trend continue?
→ Analysts expect central-bank demand to remain strong through 2026 as economic uncertainty and de-dollarization efforts persist globally.
Tiếng Việt
English
