Poland surpassed the European Central Bank in gold reserves during 2025, a year that saw central banks globally increase their holdings of the precious metal by 863.3 tonnes, according to data analyzed from multiple sources.
The surge in central bank demand, exceeding pre-2022 levels by over 100%, coincided with a shift away from U.S. Treasury bonds as the primary safe haven asset, a pattern not seen since the 1990s. This movement reflects a broader trend of diversification away from dollar-denominated assets, particularly among nations in the Global South.
China led the shift, aggressively selling off U.S. Treasury holdings. While specific figures for Chinese purchases were not immediately available, the country’s actions are viewed as a direct challenge to the dollar’s dominance. Beyond China, Poland was the largest formal purchaser in 2025, increasing its reserves from 129.6 tonnes to 172.4 tonnes – a rise in value from approximately $11.7 billion to $23.3 billion. This increased Poland’s share of gold in total reserves from 3.6% to 6.5%.
Kazakhstan, Brazil, Turkey, and Azerbaijan also significantly increased their gold reserves throughout the year. Conversely, Singapore, Russia, and Jordan registered net sales. Brazil’s purchases totaled 42.8 tonnes between September and November 2025, indicating a deliberate strategy to reduce exposure to U.S. Debt.
The price of gold responded to this increased demand, rising approximately 64-66% in 2025 to close above $4,500 per troy ounce, and surpassing $5,000 in January 2026 amid heightened geopolitical tensions. This performance marks one of the metal’s strongest in decades.
The shift towards gold is driven by a perception of increased global instability, with concerns shifting from economic growth to geopolitical risks, trade disputes, and institutional uncertainty. Gold is increasingly viewed as an asset independent of any single government’s ability to repay its debts. The weakening dollar has also contributed to gold’s appeal, as has uncertainty surrounding the future of U.S. Monetary policy and expectations of lower interest rates.
The trend of central bank diversification is not limited to emerging economies. Developed nations are also bolstering their gold reserves, signaling a widespread reassessment of traditional safe haven assets. The World Gold Council data confirms this sustained, above-average demand from central banks, despite investment demand being the primary driver of the gold market in 2025.
