Gold had a volatile run in the last month of 2025, surging to a record before paring some gains. Still, the metal delivered its best annual performance since 1979 on the back of central bank purchases, geopolitical angsts as well as debasement trades — a retreat from sovereign bonds and currencies for alternative stores of value.
Central banks bought nearly as much gold in late 2025 than they did in the first eight months of the year, according to a research by World Gold Council published on Tuesday. The data highlighted official-sector demand as a key pillar to support gold prices into this year, as countries continued to see bullion as a hedge against the dollar.
The true scale of PBOC purchases remains difficult to pin down, as numerous estimates put the actual buying higher. Goldman Sachs Group estimated that China added 15 tons of gold to its reserves in September, compared with only around one ton of gold the country officially reported.
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