Central banks buy 863 tons of gold in 2025 as prices hit $3,431

Central banks continued a 16-year buying streak in 2025, purchasing 863 tons of gold as global demand topped 5,000 tons for the first time. Sustained reserve diversification, driven by geopolitical risks and sanctions concerns, pushed the average gold price to an historic $3,431/oz (hitting all-time highs 53 times) and above $5,000/oz by January 2026. Official data likely understates true purchases (WGC estimates true buys may be ~57% higher). The shift is boosting gold’s role in reserves and fueling investor interest in tokenized gold solutions (e.g., GoldNZ), which grew rapidly in 2025 and may ease physical distribution constraints. Market impact: outsized central-bank demand and limited physical supply have driven bullish price dynamics for XAUUSD, supported growth in tokenized gold markets, and increased safe‑haven flows into gold and related products.