August 4, 2026
The world's central banks acquired a net 288.9 tonnes of gold in the second quarter of 2026 – the highest figure ever recorded for a second quarter. What makes this remarkable is the timing: the buying took place during a quarter in which the gold price fell by around 16 per cent. Anyone reading the World Gold Council's figures closely, however, will find a second and considerably more awkward story.
The "Gold Demand Trends" report published by the World Gold Council (WGC) on 30 July delivers what may be the most important message of the summer for precious metals investors. While private investors exited gold ETFs during the second quarter and jewellery demand buckled under high prices, official institutions bought with rare conviction. At a net 288.9 tonnes, purchases were roughly 62 per cent above the year-earlier figure of 177.9 tonnes.
The contrast with price action could hardly be sharper. The second quarter was gold's weakest since 2013; from the record high of USD 5,598 set in January, the metal has since given up considerable ground and currently trades at around USD 4,050. Central banks evidently did not read that weakness as a warning signal, but as an opportunity.
Poland and China Lead the Buyers' List
The single largest buyer was the National Bank of Poland with 51 tonnes. Warsaw is thereby continuing a course that brings the country close to its self-imposed target of 700 tonnes of gold reserves. In second place comes the People's Bank of China with 33 tonnes – its largest quarterly addition since late 2023, and a signal that Beijing is accelerating its diversification strategy again after a quieter phase.
Behind these two sits a broad field of smaller buyers: Uzbekistan with 16 tonnes, Kazakhstan with 15 tonnes, and the central banks of Jordan and the Czech Republic with around 6 tonnes each. This breadth matters more for interpretation than the headline figure does. A record quarter carried by a single large buyer would be fragile. When demand is spread across numerous institutions from different regions and with different motivations, that points to a structural trend rather than a one-off effect.
Russia Stands on the Other Side
Not every central bank was buying. The Bank of Russia was the quarter's largest seller at 22 tonnes. The reason is understood to be pressure on the federal budget – here gold simply serves as a liquidity reserve to be drawn upon to plug deficits. Türkiye was also on the selling side once again, though at just 4 tonnes it was markedly more restrained than in the first quarter.
These sales are central to any sound interpretation. They show that a portion of official gold movements has nothing to do with strategic conviction and everything to do with fiscal constraints. Anyone reading central bank purchases as a blanket vote of confidence in gold is making it too easy for themselves – and the same applies to anyone reading central bank sales as a blanket loss of faith.
The Awkward Part: A Revision That Changes the Half-Year Picture
This is where matters become interesting for attentive investors. Alongside the record second-quarter figure, Metals Focus – the World Gold Council's data provider – has sharply revised its estimate for the first quarter downwards: from an original 244 tonnes to just 57 tonnes.
That is no cosmetic adjustment but a revision of more than three quarters, and it changes the overall picture considerably. Taken together, central bank demand for the first half of 2026 amounts to roughly 345 tonnes – the weakest half-year figure since 2022. Viewed soberly, then, the record quarter was primarily a catch-up movement following an exceptionally weak start to the year.
For assessment purposes this means both statements are true at the same time. The second quarter was a record. The first half-year was weak. Anyone citing only one of the two figures is telling an incomplete story – and in the coverage of recent days, usually only the first has been on offer.
What the Statistics Do Not Show
A further point deserves attention: a substantial share of central bank purchases is never officially reported. Since 2022 the WGC has consistently identified a high proportion of unreported buying – the gap between estimated total demand and the purchases institutions actually disclose. The reported data underlying the report were, moreover, only captured up to 24 July; later disclosures may lead to further revisions.
Investors should draw the right conclusion from this. Central bank demand is real and it is significant – but the published quarterly figures are estimates carrying a considerable margin of error, not exact measurements. An investment decision built on a single quarterly number rests on shifting ground.
The Outlook Remains Constructive
For all these caveats, the structural direction is unambiguous. The WGC's own survey of reserve managers shows that a large majority of the institutions polled expect global gold reserves to rise over the coming twelve months. Around three quarters also anticipate that their dollar holdings will decline over the next five years.
This is where the real substance of the story lies. Central banks do not operate in quarters but in decades. Their gold purchases are not a timing signal for short-term price movements – anyone who bought in April on the basis of central bank demand is sitting on losses today. They are, however, an indicator of how institutional actors assess the long-term role of the US dollar and the case for hedging against geopolitical risk.
For the 2026 full year, the World Gold Council expects another strong year of official demand, albeit below the 2025 level. Supply should grow only modestly: high prices and healthy producer margins support mine output, but operational constraints and long project lead times limit the pace.
What the gold market did in the first half of 2026 was, above all, to change its buyer. Investors taking a long-term view in this phase will find remarkably patient company in the world's central banks.
Source：https://goldinvest.de/en/central-banks-buy-record-amount-of-gold-in-the-very-quarter-prices-fell
