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Gold’s Structural Bid - BRICS+ Now Hold 17% of Reserves
Central banks across the BRICS+ bloc have quietly amassed more than 17% of global gold reserves, embedding a structural floor under prices that private investors cannot afford to ignore.
What to know
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BRICS+ nations collectively hold over 17% of the world’s official gold reserves, with China, Russia, and India leading the accumulation trend.
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Gold is trading at $4,812/oz after a 3.5% weekly gain, with central bank demand forming an increasingly dominant share of total purchases.
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Tonight’s FOMC Minutes release could inject fresh volatility, but the longer-term driver remains sovereign diversification away from dollar-denominated assets.
What happened
The BRICS+ bloc - now encompassing China, Russia, India, Brazil, South Africa, Iran, Egypt, Ethiopia, the UAE, and Saudi Arabia - collectively holds more than 17% of global official gold reserves. That figure has been climbing steadily since 2022, when Western sanctions on Russia’s foreign exchange holdings crystallised the risk of holding reserves in currencies controlled by geopolitical adversaries.
Gold is currently trading at $4,812/oz, up 3.5% on the week after bouncing sharply from a monthly low near $4,100. The intraday range today - $4,740 to $4,888 - reflects a market still digesting macro crosscurrents, but the broader trend remains unmistakable. World Gold Council figures indicate that central bank net purchases have exceeded 1,000 tonnes annually for three consecutive years, a pace not seen since the 1960s.
Who’s involved
China’s People’s Bank of China remains the most consequential buyer. Its official gold holdings have risen by more than 300 tonnes since mid-2022, though the true figure is widely believed to be higher given the opacity of Chinese reserve reporting. IMF data consistently lags actual purchases by several months, meaning the 17% headline figure likely understates the current position.
Russia holds approximately 2,300 tonnes and has effectively stopped selling since sanctions froze roughly $300 billion of its central bank assets. India has been a quieter but consistent accumulator, adding to reserves in most months over the past two years.
Saudi Arabia is the wildcard. With enormous dollar-denominated reserves and a strategic pivot towards BRICS+ alignment, even a modest reallocation - say, shifting 5% of its reserves into gold - would represent hundreds of tonnes of incremental demand. The Kingdom’s recent diplomatic recalibrations suggest this is more than hypothetical.
Why it matters
The 17% figure matters less as a snapshot and more as a trajectory. A decade ago, BRICS nations held closer to 12% of global gold reserves. The acceleration reflects a deliberate, coordinated shift in reserve asset allocation - one that treats gold not as a relic but as the only truly neutral reserve asset in a fragmenting global order.
For gold at $4,812, this creates a structural bid that is fundamentally different from speculative or ETF-driven demand. Central banks are not momentum traders. They do not sell on a 5% pullback - as we saw last month when gold corrected from above $5,200 without triggering sovereign liquidation. This buying is sticky, patient, and largely price-insensitive.
The de-dollarisation narrative is not new, but the scale is. Dollar-denominated assets still dominate global reserves at roughly 58%, down from 72% two decades ago. Gold’s share has moved inversely, and the BRICS+ bloc is driving that rebalancing. Every percentage point shift in global reserve allocation towards gold represents roughly 500 tonnes of demand - equivalent to a full year of mine supply.
For UK-based investors considering how to buy silver or gold, the central bank accumulation trend provides important context. Silver, trading at $77/oz with a gold/silver ratio of 62.5, has historically benefited when gold’s structural floor rises. The best silver dealers in the UK have seen increased interest as investors look to position alongside sovereign buyers.
What to watch
Tonight’s FOMC Minutes release is the immediate catalyst. Any dovish tilt could push gold back towards the $4,888 session high and beyond. Quarterly IMF reserve data, due later this month, will reveal whether the central bank buying pace accelerated in Q1 - but the data lags reality by months, and China’s official disclosures remain opaque.
This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
