Gold: Central Banks Buy 39 Tons in August, China Leads

An ounce around $4,100, down more than 25% since its January record. The situation is enough to cool any saver. Yet, central banks bought another 39 tons of gold in August. U.S. rates at 5.35% are dragging down gold and silver. However, the institutions that create money continue to pile up the metal. China alone accounts for more than half of this net balance.

Key points of this article:

• Central banks bought 39 tons of gold in August, despite a drop of over 25% in gold prices since January.
• China continued its incredible buying streak, leading with 20 tons in August, followed by Uzbekistan and Poland.

Central Banks Bought 39 Tons of Gold in August

The report comes from the World Gold Council, the organization representing the gold industry. It was published on October 6. Central banks reported 39 tons of net purchases in August, which means purchases minus sales. They had reported 23 in July and 51 in June. Since January, the total has reached 170 tons.

Get out the calculator. At current prices, the August purchases alone weigh in at about $5 billion. China leads with 20 tons. Uzbekistan and Poland follow with 8 tons each, then Kazakhstan with 7 tons. Turkey returned to buying with 3 tons after three months of sales. On the selling side, Russia sold 6 tons, totaling 56 tons since the beginning of the year. Jordan, for its part, sold 3 tons. Net gold purchases by central banks since January 2024, in tons. Source: The Kobeissi Letter, data from the World Gold Council.

Gold Reserves, Beijing Continues 22nd Month of Purchases

The People's Bank of China has been buying continuously for 22 months. It has added 80 tons since January and now holds about 2,387 tons. The figure is impressive, but it only represents 9% of the country's reserves. In comparison, gold makes up 90% of Uzbekistan's reserves and 79% of Kazakhstan's.

However, the top spot of the year goes to a European country. Poland has bought 98 tons since January and holds 648 tons, with an official target of 700 tons. Marissa Salim, an analyst at the World Gold Council, signs the note. She notes, however, that China is catching up to Poland in the annual purchase rankings. More discreetly, the Czech Republic has lined up 42 consecutive months of purchases.

Gold Price Declines, Central Banks Still Buy

The ounce hit $4,066 on Wednesday, October 7. Its January peak was close to $5,600. The culprit is known. A ten-year U.S. Treasury bond yields over 5%, a level not seen since 2002. Consequently, a metal that pays no interest loses its appeal to investors.

A central bank seeks something other than yield. Gold is nobody's debt. Moreover, kept in its own vaults, it escapes asset freezes like those of Russian reserves in 2022. For Marissa Salim, the composition of August's purchases suggests that these institutions are pursuing long-term objectives. Month-to-month variations would mainly depend on execution and market conditions.

Let's keep a cool head. The pace is slowing. In its previous note, published in September, the World Gold Council counted 130 tons of reported purchases by the end of July. A year earlier at the same date, the total was around 160 tons. It also reported the comments of the governor of Uzbekistan's central bank. He is considering sales "at favorable prices". Another detail to watch from the Netherlands. The country announced on September 2 the transfer of 86 tons from New York and Ottawa to London. Gold is indeed traded more easily there.

Bitcoin supporters look at these charts with a hint of envy. In September 2025, Deutsche Bank compared Bitcoin to gold and imagined it in the reserves of central banks by 2030. For now, BTC is trading below $84,000 and reserves are still counted in bars. The next report will come next month, and Poland is only 52 tons away from its target.

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