Central Banks Extend Gold Buying Spree as Dollar Loses Shine

​Global central banks are on pace to buy another 1,000 metric tons of gold in 2025, marking the fourth consecutive year of large-scale purchases as they move away from the U.S. dollar and into bullion, according to a report from consultancy Metals Focus.

The shift comes amid heightened geopolitical tensions, ongoing economic uncertainty, and what analysts describe as diminishing confidence in U.S. fiscal leadership. President Trump’s continued push for tariff expansion, his public critiques of Fed Chair Jerome Powell, and concerns over U.S. debt levels have all contributed to a sense that dollar-denominated assets may no longer offer the same safe-haven appeal.

Gold prices, up 29% so far in 2025, hit a record $3,500 per ounce in April, driven by these concerns. Metals Focus expects prices to average $3,210 per ounce for the year, with further upside potential into 2026.

Despite record-high prices, central bank demand has remained resilient. The first quarter of 2025 saw buying activity on par with the previous three-year average. Leading buyers included Poland, Azerbaijan, and China, with steady inflows also reported from Iran.

Meanwhile, the jewelry sector—traditionally a major source of gold demand—is feeling the pressure. Jewelry fabrication dropped 9% in 2024 and is projected to decline another 16% in 2025, particularly in India and China.

Bottom line: Central banks are doubling down on gold as trust in the dollar erodes. With demand holding strong and supply only inching higher, the upward momentum in gold prices could have room to run well into next year.







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