The Golden Rush of Central Banks

As geopolitical tensions rise and global currencies battle inflation, central banks are quietly stacking gold—and the scale is staggering.According to the World Gold Council, central banks added 1,037 tonnes of gold in 2023, marking the second-highest annual purchase in modern history, just behind 2022. Now in 2025, the trend continues with over 200 tonnes purchased in Q1 alone, and traders are taking notice.
       
" Gold is becoming the world's backup plan,” says a senior economist at the IMF and if the world's largest financial institutions are buying gold... shouldn't traders be paying attention? "

Who’s Buying? (And Why?)

      - People’s Bank of China (PBOC)

      - Reserve Bank of India

      - Central Bank of Turkey

      - Singapore, Kazakhstan, Poland, and the UAE.                         


                     Key Reasons Behind the Buying Spree

  De-dollarization
Some countries are reducing reliance on the US dollar due to geopolitical risks and sanctions.

Currency hedging
Gold offers protection against depreciating currencies and rising inflation.

Geopolitical instability
War threats and global instability push central banks to store wealth in physical gold.

Reserve diversification
Reducing exposure to fiat currencies and bonds in favor of hard assets.
    Note: China has now reported 18 consecutive months of gold buying (as of May 2025), holding over 2,300 tonnes in reserves.    

                                              🧠 What This Means for Traders
1. Gold is setting a floor
With central banks consistently buying dips, it creates strong support levels for gold prices. This reduces downside risk for short-term traders and strengthens long-term bullish sentiment.

2. Volatility is back in FX pairs
USD/TRY, USD/CNY, and USD/INR are showing volatility as local currencies adjust to reserve moves. Countries hoarding gold may also reduce their exposure to USD-denominated assets, impacting dollar strength. Smart traders anticipate central bank buying zones and place long gold positions accordingly, especially during pullbacks and crisis events.

3. Forex-Gold correlation is shifting
Gold's role as a hedge against currency risk makes it more intertwined with major forex trends. Expect stronger correlations between gold and EUR/USD, gold and USD/JPY, etc.

4. Traders are front-running central banks


How You Can Trade This Trend with Onexar
At Onexar, we offer:
- Ultra-tight spreads on Gold (XAU/USD)
- 24/5 trading access
- Whether you’re a macro trader, scalper, or hedger, gold is your friend in 2025, and Onexar is your trusted platform to trade it.
- Instant execution with institutional-grade liquidity
- Copy trading access to gold-focused experts
- AI-assisted risk management tools 


When central banks shift behavior, the market follows. Their silent accumulation of gold sends a clear message: a reset is underway in global finance. As a trader, your edge comes from recognizing these shifts early and positioning accordingly. Watch Gold. Follow central banks. Stay ahead with Onexar.

                                                            Open a Forex Account with Onexar now!