• Central Banks Continue to Buy Gold: In February, central banks purchased 24 tonnes of gold, with the National Bank of Poland leading the charge
• Gold Remains a Safe-Haven Asset: Central banks' continued appetite for gold is driven by its reliability as a store of value amid economic uncertainties
• Gold Price Outlook: After hitting $3,000 per ounce in March 2025, gold is expected to see further gains, potentially reaching $4,000 by year-end if economic conditions deteriorate

Harare- Gold remained a key asset for central banks in February 2025, with a reported 24 tonnes of net purchases marking another month of robust activity in the global gold market.

Leading the charge was the National Bank of Poland (NBP), which added an impressive 29 tonnes to its reserves, cementing its position as the top buyer for the month and year-to-date.

This acquisition spree, now spanning 11 consecutive months, reflects a broader trend among central banks to bolster gold holdings amid economic uncertainties.

Poland’s Golden Streak

The NBP’s February purchase of 29 tonnes brought its year-to-date total to 32 tonnes, pushing its gold reserves to 480 tonnes, equivalent to 20% of its total reserves.

This sustained buying reflects Poland’s strategic pivot toward gold as a hedge against inflation and currency volatility, a pattern that has made it a standout player in the central banking world.

China’s Steady Accumulation

The People’s Bank of China (PBoC) continued its own gold-buying run, adding 5 tonnes in February. This marks the fourth straight month of net purchases since resuming reporting in November 2024.

While China’s monthly additions are more modest compared to Poland’s, the consistency signals a long-term commitment to diversifying its reserves, with gold now playing an increasingly vital role in its financial strategy.

Turkey, Jordan, Qatar, and Czech Republic Join the Fray

Elsewhere, the Central Bank of the Republic of Turkey added 3 tonnes, bringing its total gold reserves to 623 tonnes 38% of its total reserves. Turkey’s steady accumulation highlights its status as one of the world’s largest official-sector gold holders.

The Central Bank of Jordan matched Turkey’s 3-tonne purchase, lifting its reserves to 72 tonnes, or 30% of its total reserves, while the Qatar Central Bank added 2 tonnes, increasing its stash to 114 tonnes (19% of reserves).

The Czech National Bank rounded out the group with a 2-tonne purchase, bringing its gold reserves to 55 tonnes, though this constitutes just 3% of its total reserves.

A Familiar Pattern

February’s buying activity was largely concentrated among central banks with established patterns of gold accumulation. These institutions Poland, China, Turkey, Jordan, Qatar, and the Czech Republic have been regular participants in the gold market in recent months, reflecting a shared view of gold as a reliable store of value in an unpredictable global economy.

The 24 tonnes of net purchases in February, while significant, fit into a broader narrative of central banks fortifying their balance sheets with the precious metal.

Why Gold Remains in Focus

Central banks’ continued appetite for gold comes as no surprise. With geopolitical tensions and Trump’s trade war escalating, inflation pressures lingering, and fiat currencies facing scrutiny, gold offers a time-tested safe haven.

For nations like Poland and Turkey, where gold now accounts for a substantial share of reserves, these purchases may also signal a desire to reduce reliance on traditional reserve currencies like the U.S. dollar.

What Happens After Gold Hit $3,000 per Ounce?

Gold crossed the $3,000 per ounce threshold in March 2025, a milestone that has since reshaped market dynamics. Post-$3,000, gold has experienced a mix of consolidation and renewed momentum.

Initially, the breach triggered profit-taking among traders, leading to a brief pullback as speculative positions unwound.

However, the fundamental drivers, central bank buying, persistent geopolitical risks, and inflationary fears quickly reasserted themselves, limiting the depth of any correction.

By April 2025, with the price stabilising above $3,000, analysts see a path toward further gains.

Sustained demand from institutions and central banks, coupled with potential U.S. policy uncertainty (tariffs), could propel gold toward $3,500 in the near term.

If economic conditions deteriorate, say a manufactured recession or heightened trade tensions, the ascent could accelerate, with some forecasting a push to $4,000 by year-end.

On the flip side, a resolution of global uncertainties or a surge in gold supply from recycling might cap gains, leading to a period of sideways trading.

For now, the post-$3,000 landscape points to resilience, with gold’s safe-haven status likely to keep it elevated through 2025.

As we progress through 2025, the actions of these central banks will likely keep gold in the spotlight. Having already hit $3,000 in March, gold’s trajectory now hinges on global economic developments and investor sentiment. Whether it surges to new heights or consolidates, the yellow metal remains a cornerstone of financial stability for many of the world’s monetary authorities.

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