Global central banks expanded their gold reserves by 18.5 tons in January 2025, according to preliminary estimates from the World Gold Council (WGC), as reported by Kazakh media. This continued accumulation underscores gold’s strategic role in foreign exchange reserves, particularly amid heightened geopolitical uncertainty.
Gold Purchases and Reductions
While many central banks increased their gold holdings, some countries saw declines. Kyrgyzstan reduced its reserves by 1.9 tons, while Russia and Jordan recorded declines of 3.1 tons and 3 tons, respectively.
“Central banks maintained a strong interest in gold throughout January,” said WGC analyst Marissa Salim. “Steady purchases highlight gold’s continued importance in foreign exchange reserves, particularly as geopolitical risks remain elevated.”
Leading Buyers: Uzbekistan, China, and Kazakhstan
Developing nations remained the most active gold buyers. Uzbekistan led the acquisitions with an 8.1-ton increase, followed by China (5 tons) and Kazakhstan (3.8 tons). Other notable buyers included:
Poland – 3.1 tons
India – 2.8 tons
Czech Republic – 1.7 tons
Qatar – 1.3 tons
The ongoing trend of gold accumulation by emerging economies reflects efforts to diversify reserves and hedge against economic volatility.
Kazakhstan’s Foreign Exchange Strategy
In a related move, the National Bank of Kazakhstan has announced plans to sell approximately 750 billion tenge worth of foreign currency in the first quarter of 2025. This decision aligns with gold purchases made during the fourth quarter of 2024, signaling an ongoing strategy to balance reserve assets.
With central banks continuing to adjust their gold holdings, analysts anticipate further shifts in global reserve strategies as financial institutions navigate economic and geopolitical uncertainties.
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