(Kitco News) - Even after a busy third quarter and with gold prices maintaining elevated gains around $4,000 an ounce, central banks remain active participants in the gold market, according to updated filings with the International Monetary Fund (IMF).
Although the People’s Bank of China continues to be a consistent player in the marketplace, the National Bank of Poland remains the dominant buyer. Krishan Gopaul, Senior Analyst for EMEA at the World Gold Council, noted in a social media post that Poland bought 16 tonnes of gold last month — its first monthly increase since May.
“The bank’s gold holdings now total 530 tonnes, representing 26% of total reserves (below the new target of 30%),” he said.
In another post, Gopaul reported that China purchased one tonne of gold last month. Although the central bank has been a steady and significant buyer, the latest purchase marks its lowest monthly increase in the past three years.
“Gold holdings now stand at 2,304 tonnes, up 25 tonnes since the end of 2024,” he said.
Gopaul also noted that the Czech National Bank bought two tonnes of gold last month. The CNB has been a consistent buyer throughout the year.
“Year-to-date purchases now total 18 tonnes, lifting total gold reserves to more than 69 tonnes. The CNB has a stated target of 100 tonnes of gold by 2028,” he said.
In a final update, Gopaul said the Central Bank of Uzbekistan increased its gold reserves by nine tonnes in October.
“On a year-to-date basis, it remains a net seller, but now by only 12 tonnes. Total gold holdings stood at 371 tonnes at the end of the month,” he said.
The new activity follows the World Gold Council’s quarterly demand report last week, which showed that central banks bought roughly 220 tonnes of gold during the third quarter, up 10% from the same period last year.
However, analysts note that the year-to-date pace remains below that of the past three years. So far this year, central banks have purchased 634 tonnes of gold. Official reserves are forecast to increase by between 750 and 900 tonnes by year-end.
Although central bank demand has slowed in 2025, analysts do not expect the trend to reverse anytime soon.
In an interview with Kitco News, Matthew Piggott, Director of Gold and Silver at Metals Focus, said that gold’s 50% rally this year is one reason central bank demand has eased. The strong price gains mean central banks need to buy less gold to meet their allocation targets.
Looking ahead, Piggott said it’s difficult to see why central banks would stop buying gold altogether. He added that economic uncertainty and the ongoing need for diversification will continue to drive reserve accumulation.
