October 7, 2025
Gold has broken past a record high of $3,650 per ounce and continuing its rally into October, where prices briefly exceeded $3,800, as the price of Gold surged 42.8% between September 2024 and September 2025.
Weaker U.S. dollar, persistent inflationary pressures, and escalating geopolitical risks, are factors driving the dramatic rise.
As it stands, Nigeria’s 687,402 troy ounces of gold (approximately 21.38 metric tonnes) held as of the end of 2024 is now worth N3.7 trillion.
The increased turning to gold hy Central banks around the world as a strategic reserve asset, triggered the demand.
According to the World Gold Council, seven central banks added at least one tonne of gold to their reserves as of August 2025, while only two reported reductions.
Bank of Ghana, which added 2 tonnes in August, bringing its year-to-date total to 5 tonnes and overall reserves to 36 tonnes, is among the notable buyers of gold.
READ MORE; Trump Policy Uncertainties Trigger Price As Gold Hits All-Time High.
People’s Bank of China purchased 2 tonnes, marking its tenth consecutive month of accumulation. China’s total gold holdings now exceed 2,300 tonnes, though they still represent just 7% of its international reserves.
National Bank of Kazakhstan added 8 tonnes, its sixth straight month of buying, raising its reserves to 316 tonnes—32 tonnes higher than at the end of 2024.
Russia and Indonesia were the only sellers, offloading 3 and 2 tonnes respectively. Russia’s reduction is believed to be linked to its coin-minting programme.
The U.S. Treasury’s gold holdings, already the largest in the world, have now surpassed $1 trillion in value, more than 90 times the amount recorded on its official balance sheet.
READ MORE; Gold Decline In Sales As Dollar Strength Weighs, Investors Reposition
The Central Bank of Nigeria (CBN) held 687,402 troy ounces of gold (approximately 21.38 metric tonnes) as of the end of 2024, unchanged from the previous year. However, the value of these reserves has soared in line with global prices.
At current market rates, Nigeria’s gold holdings are now worth over N3.7 trillion, up from N2.77 trillion in 2024 and N1.28 trillion in 2023.
This N2.4 trillion gain over two years underscores gold’s resilience and reflects a broader international trend of central banks increasing gold allocations amid economic uncertainty.
Financial experts have emphasized gold’s enduring role as a safe-haven asset. Chief Economist at the Development Bank of Nigeria, Professor Joseph Nnanna, at the recent Comercio Partners H2 Economic Outlook Forum in Lagos, said “Buying more gold is always good. It remains one of the safest and most reliable stores of value.”
Nnanna, explained that gold has potential to drive industrial growth: “When central banks source gold domestically, it stimulates the entire mining value chain, from raw extraction to refining and jewellery manufacturing. That catalyzes industrialisation.”
READ MORE; Foreign Investors Underprice Nigeria, Ghana, Angola Eurobonds
The surge in gold buying to was linked to geopolitical tensions, particularly those stemming from U.S. policy decisions by the CEO of Graeme Blaque Advisory, Zeal Akaraiwe.
Akaraiwe said, “Our ability to settle international transactions is increasingly influenced by political decisions made in America. This vulnerability is pushing countries to seek alternatives, with gold being a leading option.”
He noted that the rally reflects a strategic shift away from dollar dominance, as central banks globally move to de-dollarise their reserves.
Gold’s record-breaking performance this year has been supported various factors:
Investor flight to safety amid trade wars and geopolitical instability
Concerns over a potential U.S. government funding crisis
Strong inflows into gold-backed exchange-traded funds (ETFs)
Renewed interest rate cuts by the U.S. Federal Reserve
The rally has already exceeded Citi’s Q3 2025 projection of $3,500 per ounce, which wa…
