Central Bank Gold Buying Surge Continues
Key Questions
Why are central banks increasing their gold purchases?
Central banks bought 863 tons in 2025, well above historical averages, with the PBOC extending its streak to 19 months by adding 320k oz in May. This provides long-term structural demand support amid a shift where gold now comprises 27% of global reserves versus 22% for US Treasuries.
How does China's gold accumulation impact the market?
China's relentless buying reinforces the physical versus paper gold divergence, according to Andy Schectman. It contributes to sustained demand even as other factors influence prices.
What does it mean that gold has surpassed US Treasuries in central bank reserves?
Gold now accounts for 27% of global central bank reserves compared to 22% for US Treasuries. This reflects a broader diversification trend away from traditional dollar assets.
Is the central bank gold buying trend expected to continue?
Current data shows purchases well above historical averages, driven by countries like China. Analysts view this as providing ongoing structural support for gold prices over the long term.
How does India's RBI strategy relate to global gold trends?
Related coverage highlights how gold shapes India's economy through the RBI's accumulation strategy. This aligns with the worldwide surge in central bank buying for reserve diversification.
PBOC extends gold buying streak to 19 months, adding 320k oz in May. Gold now surpasses US Treasuries in global central bank reserves (27% vs 22%). Central banks bought 863 tons in 2025, well above historical averages, providing long-term structural demand support. China's relentless accumulation (Andy Schectman) reinforces the physical vs paper divergence.