Central Bank Gold Buying Surge Continues; Holdings at 50-Year High; De-dollarization Trend Reinforced
Key Questions
How much gold have central banks purchased recently?
Central banks bought $95 billion worth of gold in 2025. The PBOC extended its streak to 19 months with 10 tonnes purchased in May.
What does the WGC survey reveal about future buying?
45% of central banks plan to increase gold holdings according to the World Gold Council survey. This reflects ongoing diversification away from traditional reserves.
Has gold overtaken US Treasuries in reserves?
Gold now represents 27% of reserves versus 22% for US Treasuries, making it the top reserve asset. Holdings have reached 36,000 tonnes, the highest in 50 years.
How does de-dollarization support gold prices?
The de-dollarization trend, reinforced by deals such as the Iran agreement, continues to favor gold. Central bank demand provides structural support despite recent market sell-offs.
What is the impact of China's paper gold closure?
The closure of leveraged retail gold trading in China is expected to tighten physical supply. This development adds another layer of support for gold prices.
Central banks spent $95B on gold in 2025. PBOC extends buying streak to 19 months (10t in May), Poland 14t in April. WGC survey: 45% plan to increase holdings. Gold overtook US Treasuries as top reserve asset (27% vs 22%). Holdings at 36,000t, highest in 50 years. De-dollarization trend reinforced by Iran deal. Structural support for gold despite recent sell-off. China's paper gold closure adds supply squeeze angle.