Central banks globally increased their gold reserves by a net 53 tonnes in October, marking the highest rise since November 2024. This represents a 36% rise from September, with total purchases reaching 254 tonnes for the year. Poland and Brazil were the primary contributors to this increase. Russia, meanwhile, reduced its holdings by 3 tonnes amidst this growing demand.

Poland added 16 tonnes to its reserves in October, reaching 531 tonnes, which constitutes 26% of its total reserves. Brazil also boosted its holdings by another 16 tonnes, increasing its total to 161 tonnes, accounting for 6% of its reserves.

China’s Continuous Gold Acquisition

China reported a 12-month streak of gold acquisitions, adding 0.9 tonnes last month, raising its total to 2,304 tonnes. This aligns with a broader trend whereby rising gold prices have curbed overall demand compared to the previous three years. Despite this, central banks remain engaged in strengthening their gold reserves, maintaining active purchasing across multiple countries.

The significant net purchase of 53 tonnes of gold by global central banks in October is a strong bullish signal. This trend of accumulating hard assets, the strongest we’ve seen since November 2024, suggests a continued desire to de-dollarize and hedge against persistent inflation. For derivative traders, this provides a solid underlying support for gold prices heading into the end of the year.

This central bank activity likely contributed to gold’s rally through November, where we saw prices test the $2,400 per ounce level before consolidating. Recent data confirms this view, with the latest US CPI print for November 2025 coming in slightly higher than expected at 3.5%, reinforcing the case for inflation-hedging assets. We are now seeing this reflected in derivatives markets, with open interest in February 2026 gold call options rising by 8% over the last two weeks alone.

Gold Market Patterns

Given the recent price consolidation, implied volatility has eased slightly, making options strategies more attractive. We see traders increasingly favoring bull call spreads to target a move toward the $2,450 strike price while capping risk. This allows for participation in potential upside driven by further institutional buying without full exposure to a potential short-term pullback.

This pattern is reminiscent of the period we observed in 2023 when record central bank purchases preceded a sustained multi-month rally in gold. Back then, consistent buying from institutions like the People’s Bank of China provided a strong floor under the market, absorbing any dips. The continued buying from nations like Poland and Brazil suggests this dynamic is firmly back in play.

While the buying from Poland and Brazil is aggressive, we must also note the details within the trend. China’s purchases, for instance, slowed to just 0.9 tonnes in October, their smallest addition in the past year. This warrants careful monitoring, as a significant drop-off in Chinese demand could temper overall market sentiment.

The small sale of 3 tonnes by Russia is largely insignificant against the backdrop of massive global buying. Therefore, we should view any price dips in the coming weeks not as a sign of weakness, but as potential entry points. Selling cash-secured puts at strike prices below the current market, such as around the $2,325 level, could be a prudent way to gain long exposure at a better price or simply collect premium.

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