Central Banks Accelerate Gold Purchases to Record Pace in Q3
· Business · Bloomberg, Wall Street Journal
Central banks worldwide increased gold reserves at the fastest quarterly pace since late 2024, acquiring 290 tonnes in the third quarter despite mounting pressure from higher oil prices and rising interest rates. The World Gold Council attributed the robust buying to continued diversification away from traditional reserve assets, with purchases showing no sign of slowing even as global financial conditions tightened. India remained a significant buyer during the period, reflecting its ongoing strategy to bolster foreign exchange reserves through precious metal exposure. Analysts noted that geopolitical uncertainty and currency fluctuations continue to drive institutional demand for the safe-haven asset.
Why it matters
The surge in central bank buying underpins sustained upward pressure on gold prices, directly impacting Indian consumers and jewelers who face higher retail rates as international prices climb. For Indian savers and portfolio investors, the trend reinforces gold's role as a critical hedge against rupee depreciation and global inflation.
Read the original report — Bloomberg
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