The central bank is buying gold like crazy! October 53 tons is the strongest of the year, and the gold price correction is just a "half-time break"?

World Gold Council (WGC) Europe, Middle East and Africa senior analyst Krishan Gobaul said that central banks ushered in the strongest month of gold purchases this year in October, with major buyers returning and new countries expressing interest in increasing their gold reserves.

"Central bank demand for gold remained strong in October, with purchases totalling 53 tonnes (up 36 per cent from the previous month), continuing the strong trend seen so far this year," Mr. Goebaul said in the latest report from the World Gold Council. "Purchases remained concentrated in a few central banks, with the National Bank of Poland re-energising this month as the main leader."

He pointed out that announced net purchases through October 2025 totaled 254 tonnes, a slower pace than in the past three years.

"This may reflect the impact of higher gold prices, but even so, continued gold purchases by emerging market central banks - combined with the findings of our annual survey - strongly suggest that these purchases are strategic rather than opportunistic, further highlighting the importance of gold in the context of ongoing macroeconomic uncertainty," said Mr. Goebaul.

Official gold purchases in October were still dominated by the same central banks that have led the market so far this year.

"The National Bank of Poland re-entered the market in October after a five-month suspension of purchases. After recently raising its gold allocation target to 30 per cent, the bank bought 16 tonnes of gold that month, increasing its gold reserves to 531 tonnes, or 26 per cent of total reserves based on gold prices at the end of October," Mr. Gobaul said.

Brazil's central bank also increased its gold holdings for the second month in a row, adding 16 tonnes in October after buying 15 tonnes in September. He added: "Its gold reserves now stand at 161 tonnes, or 6 per cent of its total reserves. The Central Bank of Uzbekistan (9 tonnes), Bank of Indonesia (4 tonnes), the Central Bank of Turkey (3 tonnes), the Czech National Bank (2 tonnes), the National Bank of the Kyrgyz Republic (2 tonnes), the Bank of Ghana (> 1 tonne), the People's Bank of China (> 1 tonne), the National Bank of Kazakhstan (> 1 tonne) and the Central Bank of the Philippines (> 1 tonne) also made gold purchases in October."

"At the time of writing, the Bank of Russia was the only institution reporting a decline in gold reserves for the month - down 3 tonnes to 2,327 tonnes," Mr. Goebaul wrote in the report. Recent reports indicate that Russia is using its sovereign gold reserves this year to make international payments and meet domestic demand.

"Year-to-date, the National Bank of Poland (83 tonnes) remains the largest buyer of gold in the official sector, buying twice as much as the second largest buyer, Kazakhstan (41 tonnes)," Mr. Goebaul stressed. "While gold purchases remain concentrated in emerging market central banks, the list of buyers, both long-term players and newcomers, remains extensive."

Looking to the future, Goebaul said that several central banks have also expressed plans to increase their gold reserves in the coming months and years.

"According to recent statements by Serbian President Aleksandar Vucic, the National Bank of Serbia plans to increase its gold reserves to at least 100 tonnes by 2030. This long-term goal means that its reserves will nearly double from the current level of 52 tonnes at the end of October, reflecting the country's continued commitment to using gold as a strategic asset in its reserve portfolio," he said. At the recent London Bullion Market Association meeting in Kyoto, Madagascar and South Korea also expressed interest in increasing their gold reserves, although neither provided a specific timetable for these plans. "

"This reinforces the findings of our 2025 survey, which showed that 95 per cent of respondents expect central bank gold reserves to continue to grow in the coming year," concluded Mr. Gobaul.

Gold's "central bank narrative" continues to strengthen

The report paints a picture of how central bank gold purchases have evolved from a cyclical to a structural trend, with implications not just in providing bottom support for gold prices, but also in:

Reshaping market psychology: Strategic gold purchases reduce short-term speculative fluctuations in gold's long-term value.

Broadening the demand frontier: Emerging markets and European countries participate together to form a cross-regional consensus asset allocation.

Strengthening financial attributes: Gold's role in central bank balance sheets is shifting from a traditional store of value to a core reserve asset that is both strategically safe and liquid.

In the future, if macroeconomic uncertainties persist (e.g. debt pressure, currency system fluctuations), central bank demand is likely to resonate with retail investment and safe-haven funds, further strengthening gold's core asset position in the next cycle and providing solid and strong support for gold prices.

(Daily chart of spot gold, source: Internet)

At 14:13 Beijing time, spot gold was quoted at $4181.64 per ounce.