Central bank gold buying remains positive in 2025 even though July showed a slower net build, and China extended its accumulation into August, which signals a deliberate long term reserve strategy that supports diversification and shock protection. This pattern has implications for how reserve managers think about currency risk, for why gold keeps a safe haven role at record price levels, and for how portfolios use gold as a hedge.
Key takeaways
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Central banks stayed net buyers in July with an estimated net 10 tonnes, which was a slower month but still a positive contribution to official sector demand.
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China added again in August for a 10th straight month, lifting reported holdings to 74.02 million fine troy ounces and reinforcing a diversification theme.
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Record price action coincided with moderated official purchases quarter over quarter, yet the multi year central bank buying trend remains intact.
What the data shows now
World Gold Council data indicate central bank gold buying moderated to a net 10 tonnes in July, which is lighter than prior months but keeps the official sector on the net buyer side. Broader reporting around mid year suggests 2025 could still be robust by historical standards, with survey indicators pointing to continued reserve additions and some coverage projecting very strong official demand. The combination of steady official interest and price strength hints that reserve policy is not simply chasing short term moves, rather it reflects strategic goals that span cycles.
China keeps adding and why it matters
China’s central bank added gold in August for the 10th consecutive month, taking reported holdings to 74.02 million fine troy ounces and valuing reserves near 254 billion dollars at month end. The streak followed July data that already marked a ninth straight month of additions, which underscored a measured and ongoing approach to reserve diversification. Sustained purchases at elevated prices suggest a longer horizon where gold’s neutrality and liquidity complement currency assets in the reserve mix.
Why central banks prefer gold now
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Safe haven role during uncertainty, including policy and geopolitical risk, which supports demand when confidence in fiat stability fluctuates.
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Diversification away from a single currency bloc, which reduces exposure to swings in dollar strength and to policy frictions.
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Neutral reserve asset with deep liquidity and no issuer risk, which can help in stress scenarios and settlement.
Price action and policy interaction
Gold reached fresh records around early September as rate cut expectations and macro uncertainty lifted demand, while official sector buying stayed positive but more selective. Second quarter context showed slower central bank purchases compared with earlier months because price spikes can delay some buying, yet the structural bid from reserves persisted on a rolling basis. This mix means central bank gold buying can ebb month to month while still offering a durable tailwind to the asset class over time.
Who is buying and how it adds up
Recent WGC updates highlighted additions from Kazakhstan, Turkey, China, and the Czech Republic in July, showing many programs are incremental rather than episodic. Poland has been a notable buyer in 2025 by year to date totals, even if month to month flows pause, which speaks to multi quarter planning by some reserve managers. Together these purchases support the broader trend where emerging market central banks use gold to balance currency reserves and to build resilience.
Why central bank gold buying still matters for investors
When the official sector buys steadily through cycles, it can provide a macro backstop that strengthens the case for gold as a portfolio hedge against currency shocks and tail risks. The signal is not about timing short term moves, it is about acknowledging a persistent bid that can dampen drawdowns when policy or growth surprises hit. A small strategic allocation can complement cash and high quality bonds, especially in periods when rate paths and policy credibility are in flux.
