Central Bank Gold Purchases Decline Sharply Despite Rising Prices, Analysis by VT Markets
In the global gold market, central banks now slow their gold buying. Gold prices climb while banks cut purchases. Daniel Ghali from VT Markets spoke on October 30, 2025. His view shows a shift in gold reserve plans with banks worldwide.
Gold Price Uptrend vs. Central Bank Demand
Gold now costs more. In August, prices hit above $2,550 per ounce. Today, prices near $2,420 per ounce. Rising costs usually push banks to add gold as a safe asset. New data, however, show banks buy much less gold.
The World Gold Council’s Q3 report for 2025 tells that net bank gold buying fell to 90 tonnes. Past quarterly averages stayed above 200 tonnes during 2024. This drop makes clear that banks now delay new gold buys even when prices grow.
Reserve Value and Shifting Strategies
Rising gold prices make the banks’ current gold more worth. The extra value lessens the push to buy more gold soon. Bank urgency from past quarters now seems to float away.
Some countries once focused on reducing their use of the U.S. dollar now show a slow gold buy. Earlier, these moves helped push gold demand, especially with countries like Brazil, Russia, India, China, and South Africa. Yet, now key buyers, including China, keep their gold buying flat for four months straight.
Regional Shifts in Bank Gold Buying
Recent reports from VT Markets tell that Eastern European banks now drive more gold inflow. Previously, banks from Brazil, Russia, India, China, and South Africa led the hunt. Today, local needs and economic plans seem to guide the gold buys.
What This Means for Traders
Traders watch closely as banks lower their gold buying. Banks once grounded gold demand and held up prices. With less bank support, the market feels more unsure.
Investment funds and Commodity Trading Advisors also now sell gold to cut price swings. Even if these funds now sell, no grand return to heavy buying is seen soon. Gold ETFs, like GLD, saw over $1.5 billion leave their funds in October 2025. Investors pull back when forecasts stay unclear.
The Debasement Trade and Market Mood
Some investors buy gold to guard against money losing value and growing prices. Big funds and retail buyers joined this trend during the price rise. Today, risk and reward do not match well. Political matters, like upcoming U.S. federal debt hearings, might change the U.S. dollar’s power and, with it, gold’s pull.
Market data remain somewhat hidden because of report delays after a short government shutdown in early October 2025. Internal models and ETF flows hint that even after recent price falls, many large positions still hold fast. So, a drop now does not mean banks or funds must rush to buy gold.
A Market at a Crossroads
Fewer bank buys, a pause from major buyers, and shifting investor mood make gold’s path hard to read. Rising prices once spurred fast gold buys. Now, the market sits in a pause and rethinks its steps.
Traders and investors watch each new event, policy shift, and trade move. These steps now shape gold and other precious metals in a subtle way.
This article shows current trends around bank gold buying and market shifts as reported by VT Markets. Readers should check many sources and do their own work before following these trends.
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📝 About This Article
This article was generated by Hivebox AI in collaboration with AuCan Gold.
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⚠️ Disclaimer
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