Central Banks Ramp Up Gold Reserves in October

A Record-Breaking Month Highlights Strategic Shifts in Global Reserve Management

India Leads October’s Gold Buying Surge

Central banks worldwide purchased a net total of 60 tons of gold in October, the highest monthly figure in 2024, according to the World Gold Council (WGC). This surge, double the 12-month average, was spearheaded by India, which added 27 tons during the month. India’s year-to-date (y-t-d) gold purchases reached 77 tons, a five-fold increase compared to 2023.

The Reserve Bank of India (RBI) emerged as the leading buyer, reflecting a strategic shift toward gold accumulation. The WGC noted that India’s robust activity highlights emerging market economies’ growing interest in gold as a hedge against economic uncertainties.

Emerging Market Central Banks Dominate

Emerging markets accounted for the bulk of gold purchases, with Turkey and Poland following India in y-t-d activity. Turkey added 17 tons in October, marking its 17th consecutive month of net buying and setting a new monthly record since December 2023. Turkey’s y-t-d purchases of 72 tons now constitute 34% of its total reserves.

Poland’s National Bank bought 8 tons in October, extending its buying streak to seven months. The central bank has accumulated 69 tons y-t-d, amounting to 17% of its reserves. Poland aims to increase its gold allocation to 20% of its total reserve assets, underlining the metal’s role in diversifying national reserves.

Smaller Buyers Make Strategic Moves

Other nations also expanded their gold reserves in October. Kazakhstan added five tons, reversing five months of net selling, though it remains a net seller for the year by four tons. The Czech National Bank added two tons, achieving its 20th consecutive month of net buying and bringing its total reserves to 49 tons. Kyrgyzstan and Ghana each added one ton of gold, continuing steady growth in their reserves.

Ghana’s reserves rose from under 9 tons in mid-2023 to 28 tons, showcasing a significant upward trajectory. These additions reflect broader efforts among smaller economies to bolster their financial resilience.

Gold’s Strategic Appeal Remains Strong

Year-to-date, central banks globally have purchased 694 tons of gold, matching 2022 levels. Despite rising gold prices and occasional tactical sales, October’s rebound underscores gold’s enduring appeal.

The WGC attributed the sustained demand to gold’s strategic importance in managing risks and diversifying reserves. Senior Research Lead Marissa Salim noted, “The rebound in October signals continued interest from central banks to accumulate gold as a vital component of reserve portfolios.”

The sharp rise in October’s gold purchases underscores the metal’s role as a strategic asset for central banks. With both economic uncertainties and geopolitical risks driving diversification strategies, gold remains a cornerstone of global reserve management.