Central Banks Bought Less Gold in 2025 But Still Hit 45-Year High
Central bank gold purchases in 2025 fell from the prior year but still reached the second-highest level on record, supporting gold's 44% rally to $4,550 per ounce.
Central banks bought less gold in 2025 than the previous year, but total purchases still reached the second-highest level on record, according to a Metals Focus report. The data underscores the sustained demand from official institutions that helped drive gold prices to a 44% gain last year.
Gold rallied 44% in 2025, reaching $4,550 per ounce in December and recording 56 new all-time highs. The report attributed the sharp rise to concerns over global growth, inflation, and supply chains, which pushed investors to increase gold allocations as a hedge against stock market volatility. Central banks' pivot away from the dollar also buoyed prices, as despite a slight dip in buying volume, the overall trend remained historically strong. For precious metals traders, this persistent central bank demand provides a key support floor under gold prices, even as other factors like interest rate expectations shift. NowPrice's real-time gold quotes show the metal trading near recent highs, reflecting the ongoing safe-haven appeal.
Looking ahead, traders will watch for any acceleration or slowdown in central bank purchases, particularly from major buyers like China, India, and Turkey. The next catalyst could be shifts in US monetary policy or geopolitical developments that further influence gold's safe-haven demand. With gold already at elevated levels, any surprise in official sector buying could trigger the next leg higher or a corrective pullback.