The role of central banks in regulating global gold prices has become increasingly significant, especially since the onset of the Russia-Ukraine war in 2022. According to the World Gold Council’s Central Bank Gold Reserves Survey 2025, around 43% of central banks plan to increase their gold reserves.
The survey also reveals that 95% of central banks believe they currently hold adequate gold reserves for the next 12 months. This growing interest in gold stems from geopolitical tensions—particularly the U.S. using the dollar as a weapon against Russia, which has prompted many nations to seek alternatives to the U.S. dollar. As a result, gold purchases by central banks have surged.
According to U.S. financial outlet Investor.com, by the end of 2024, central banks worldwide held approximately 36,200 tons of gold, accounting for nearly 20% of global official reserves, up from about 15% the previous year. The International Monetary Fund (IMF) projects that central banks will purchase an additional 900 tons of gold in 2025.
Analysts point to a declining confidence in the U.S. dollar as a reserve currency as a key reason behind the shift. Countries with anti-U.S. economic stances are increasingly turning to gold as a safe-haven asset.
The trend is especially visible among BRICS nations—Brazil, Russia, India, China, and South Africa—which are not only seeking to develop alternatives to the dollar but are also among the world’s largest gold buyers. China’s central bank, the People’s Bank of China, has increased its gold holdings for seven consecutive months, with reserves reaching $3.285 trillion in May.
Interestingly, this gold-buying spree has continued despite rising gold prices. Analysts say China’s persistent purchases reflect its urgency to reduce dollar dependency. This is further evidenced by a notable reduction in China’s U.S. Treasury holdings, which fell from $784 billion in February to $757 billion in April—a drop of $27 billion in just two months.
The WGC survey also notes that 47% of central banks now source gold from both large and small mining operations, with 37% of purchases coming from large-scale mines and 16% from smaller ones. The remainder is bought from open markets, with slight variations depending on the country.
In April 2025, global gold prices hit an all-time high of $3,500 per ounce, and as of this report, are hovering around $3,250 per ounce. Financial analysts warn that if central banks continue their aggressive gold acquisitions, prices could rise even further.
Amid growing geopolitical uncertainty, it’s clear that central banks are turning to gold as a strategic safeguard, signaling a possible long-term shift in the global financial order.
