The World Gold Council has stated that this October was the strongest month of gold purchases by central banks so far this year. Major buyers have returned to the market, and a number of new countries have expressed interest in increasing their gold reserves.

The latest report released by the World Gold Council shows that central bank demand for gold remained robust in October, with total net purchases reaching 53 tonnes, a 36% increase month-on-month, extending the strong trend seen this year. Buying activity remains concentrated among a small number of central banks, with the National Bank of Poland re-emerging as a major leader in October.

The continued gold-buying by emerging market central banks strongly indicates that these purchases are strategic rather than opportunistic, further underscoring the importance of gold against a backdrop of persistent macroeconomic uncertainty.

After pausing purchases for five months, the National Bank of Poland returned to the market in October. Having recently raised its gold allocation target to 30%, it bought 16 tonnes of gold during the month, bringing its total gold reserves to 531 tonnes. Based on end-October gold prices, gold now accounts for 26% of its total reserves.

The Central Bank of Brazil also increased its gold reserves for a second consecutive month, adding 16 tonnes in October after purchasing 15 tonnes in September. Its gold reserves now stand at 161 tonnes, representing 6% of total reserves.

The central banks of Uzbekistan, Indonesia, Turkey, the Czech Republic, Kyrgyzstan, Ghana, China, Kazakhstan,and the Philippines also bought gold in October.

The Central Bank of Russia was the only institution to report a decline in gold reserves for the month. Recent reports indicate that Russia has been drawing on its sovereign gold holdings this year to make international payments and meet domestic needs.

Looking ahead, many central banks have already indicated plans to increase their gold reserves over the coming months and even years. Central bank gold buying has evolved from a cyclical pattern into a structural trend. Its impact is not only in providing a floor of support for gold prices, but also in reshaping market psychology: strategic gold purchases dilute the influence of short-term speculative swings on gold’s long-term value.

Market Analysis:

On the 4-hour chart, gold is fluctuating in a range, with the MACD lines and histogram contracting near the zero line. If macroeconomic uncertainty continues in the future, central bank demand is likely to resonate with retail investment and safe-haven flows, further cementing gold’s status as a core asset in the next cycle and providing strong, solid support for gold prices.