Metals Focus reports that central banks are expected to purchase 1,000 metric tons of gold in 2025 – marking their fourth year of massive buying – as they shift reserves away from the dollar.
Gold prices have surged 29% this year, hitting a record $3,500/oz in April amid geopolitical tensions and economic uncertainty under Trump’s tariff policies. Despite higher prices, central bank demand remains strong, with Q1 purchases matching 2022-24 averages.
“Trump’s unpredictable policies, criticism of the Fed, and worsening U.S. fiscal health are eroding trust in the dollar,” Metals Focus noted. Geopolitical risks have also dampened the appetite for U.S. assets.
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Central banks, the third-largest gold buyers after jewelry and physical investment, may see an 8% drop from 2024’s record 1,086 tons. Poland, Azerbaijan, and China led Q1 purchases, while Iran’s steady inflows hint at more buying.
Jewelry demand, however, has slumped due to high prices, falling 9% in 2024 and projected to drop 16% in 2025, mainly in India and China.
Metals Focus predicts gold will average $3,210/oz in 2025, up 35%, with gains likely extending into 2026.
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