Global central banks are gearing up for continued aggressive gold purchases in 2025, with a record 45 percent planning to increase their bullion holdings in the short term, according to fresh World Gold Council data released Tuesday. This marks the strongest appetite for central bank gold accumulation on record, even as prices have surged over 120 percent in just two years.
The findings signal that monetary authorities worldwide remain committed to diversifying away from traditional reserve currencies despite elevated price levels. Central bank buying has been a major driver behind gold’s recent rally, with institutions seeking alternatives to dollar-denominated assets amid geopolitical tensions and currency volatility concerns.
Market participants should expect continued upward pressure on gold prices as institutional demand shows no signs of cooling. The combination of record central bank interest and already-elevated prices suggests the precious metals market may face sustained volatility ahead as traditional price sensitivity appears diminished among sovereign buyers.
FXnCO Insight
Traders should position for sustained gold volatility with central bank flows likely to override typical price resistance levels in coming months.
Source: FXStreet