Gold Rush Accelerates: Central Banks Hoard 15 Tonnes in August, Eyeing a Record-Breaking Year Amid Global Chaos
Central banks aren't slowing down—their appetite for gold is fiercer than ever, signaling a seismic shift in how nations are safeguarding wealth against everything from currency wars to tariff tsunamis. In August alone, they scooped up a net 15 tonnes, bouncing back from July's flatline and locking in the 27th straight month of buys over the last 28. This isn't just buying; it's a fortress-building spree that's reshaped the global reserve landscape, with institutions from emerging powerhouses to established players piling in to outmaneuver economic headwinds.
Leading the charge was the National Bank of Kazakhstan, snapping up 8 tonnes in its sixth month running of aggressive accumulation. Hot on their heels, the National Bank of Bulgaria added to its stash, while the Central Reserve Bank of El Salvador made waves by grabbing nearly 14,000 troy ounces—about 0.4 tonnes—as part of a bold diversification push for its international reserves. The Central Bank of Turkey wasn't far behind, bolstering holdings amid regional volatility. These moves aren't isolated; they're part of a broader pattern where banks are treating gold as the ultimate insurance policy against inflation spikes and geopolitical flashpoints.
Zoom out, and the numbers paint a jaw-dropping picture. Year-to-date through August, central banks have netted around 700 tonnes, putting them on pace for another blockbuster year—potentially topping 1,000 tonnes for the fourth straight time since 2022. That's a far cry from the sleepy 400-500 tonnes annual average of the prior decade. The National Bank of Poland dominates the 2025 leaderboard with a whopping 67 tonnes added so far, doubling down on its gold target even as prices soared past $3,500 per ounce earlier this year. Meanwhile, heavyweights like the People's Bank of China and the Central Bank of the Philippines chipped in smaller but steady increments in recent months, from 2 tonnes in May to consistent 1-tonne drips.
Why the frenzy? Diversification is the buzzword. With U.S. tariffs under the new administration rattling supply chains and the dollar's dominance under scrutiny, banks are slashing exposure to greenbacks and piling into bullion that holds value through crises. Our latest Central Bank Gold Reserves Survey underscores this: 95% of respondents expect global official reserves to swell further over the next year, praising gold's role as a crisis hedge and inflation shield. Even at elevated prices—up 29% in 2025 so far—buying hasn't flinched, with only minor sales from the Central Bank of Russia (3 tonnes down) and Bank Indonesia (2 tonnes off) in August.
This relentless demand is propping up gold's floor, with forecasts pointing to $2,900-$3,100 per ounce by year-end if U.S. growth stumbles and the Fed slashes rates deeper. Consumer frenzy in India and China adds fuel, but central banks are the real game-changers, accounting for nearly a quarter of total demand. Picture this: over 2,700 tonnes snapped up since 2022, the fastest clip in modern history. It's not hype—it's strategy, as reserve managers bet on gold's timeless edge in a world where trust in fiat is fraying.
For investors, this is a neon sign: gold's not just surviving; it's thriving in uncertainty. Whether you're eyeing ETFs, physical bars, or mining plays, the central bank momentum could propel prices higher into 2026. As one survey respondent put it, "Gold's attributes make it indispensable during turbulence." With Q3 data dropping later this month, expect more proof that this golden era is far from over—it's just heating up.
This surge isn't fading—it's the new normal for a multipolar world where gold reigns supreme. Stay golden.
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