Central Banks Aggressively Buy Gold: Q3 Sees 220 Tonnes Added; RBI Acquires 600 Kg

Central banks worldwide have significantly increased their gold acquisitions during the third quarter, adding a net of 220 tonnes. This represents a 28% increase from the previous quarter, as detailed in the World Gold Council's (WGC) Gold Demand Trends Q3 2025 report. This trend highlights a sustained strategic commitment to gold as a reserve asset and a safe haven, even amidst historically high gold prices. The total gold acquisitions by central banks for the quarter ending September 30 showed a 10% year-on-year increase compared to the 199.5 tonnes acquired in the same period last year. For the first nine months of 2025, central bank acquisitions reached 634 tonnes, a slight decrease from the 724 tonnes purchased in the first nine months of 2024. In India, the Reserve Bank of India (RBI) added approximately 600 kilograms of gold to its reserves between April and September this year, bringing its total gold reserves to 880 tonnes by the final week of September. Digital gold investments, including exchange-traded funds (ETFs), also experienced substantial growth, reaching 221 tonnes, a 134% year-on-year increase. Leading purchasers in Q3 included the National Bank of Kazakhstan (18 tonnes) and the Central Bank of Brazil (15 tonnes). Notably, 66% of third-quarter central bank acquisitions remain undisclosed.

Impact This news can impact the Indian stock market by influencing investor sentiment towards gold as an alternative safe haven asset. It might lead to shifts in investment flows between equities and gold, and could also affect currency valuations and inflation expectations. Impact Rating: 7/10

Definitions: Reserve Asset: Assets held by a central bank or monetary authority that are used to back liabilities, settle international debts, or influence monetary policy. Safe Haven Asset: An investment that is expected to retain or increase its value during times of market turbulence or economic downturns. Tonnes: A unit of weight equal to 1,000 kilograms. Exchange Traded Funds (ETFs): Investment funds traded on stock exchanges that track underlying assets like commodities, bonds, or indices. World Gold Council (WGC): The market development organization for the gold industry, aiming to stimulate and sustain demand for gold.