Central banks surge gold purchases and relocate reserves amid rising geopolitical risk
Central banks bought about 79 tonnes of gold in August—four times the pre-2022 average—and are moving portions of their holdings to more secure locations.
Gold purchases by central banks surged to 79 tonnes in August, a level more than four times the pre-2022 average of 17 tonnes, and a three-month seasonally adjusted pace of 85 tonnes per month. China emerged as the largest identifiable buyer, adding roughly 25 tonnes, though other economies may be buying more undisclosed amounts. Domestic central banks have stayed largely passive, already holding substantial reserves.
Meanwhile, the Dutch central bank relocated 86 tonnes from New York and Ottawa to London, citing increased geopolitical unrest and the need for quicker tradability. France’s central bank sold 129 tonnes in New York and repurchased gold in Europe to improve purity standards. Overall, central banks reduced holdings at the New York Fed by 40 tonnes while increasing them at the Bank of England by 46 tonnes, and a growing share are refusing to disclose future storage plans, underscoring concerns over reserve security.
Why it matters
Rising gold buying and storage shifts signal central banks’ response to geopolitical instability and doubts about reserve currencies.
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