Goldman Sachs reports steady gold demand from central banks

Central banks have become a major driver behind gold's record price surge. While their exact purchases remain undisclosed, there are no signs of this trend slowing down, Bloomberg reports.

According to Goldman Sachs’ estimates, global financial regulators are accumulating roughly 80 tons of gold per month, worth about $8.5 billion at current prices. While most of these transactions go unreported, trade data reveals significant buying activity from China, along with other unidentified buyers via Switzerland.

The World Gold Council reports that central banks and sovereign wealth funds collectively acquire up to 1,000 metric tons of the precious metal each year, accounting for at least 25% of global production. An HSBC survey of 72 financial institutions showed that more than a third intend to increase their gold purchases in 2025. Not a single respondent indicated plans to reduce their holdings.

Surging demand for gold stems from escalating geopolitical tensions and the global shift away from dollar dependence. Goldman Sachs analysts predict central banks' aggressive acquisitions will drive the metal’s prices to $3,700 per ounce by year-end.