Global Central Banks Keep Adding Gold Despite Elevated Prices
The significance of central-bank gold buying goes beyond price support.
Global central banks reported net gold purchases of 39 tonnes in August 2026, bringing their reported net purchases for the first eight months of the year to 170 tonnes. The buying continued despite gold trading at prices well above its 2025 average, although the pace of official accumulation has varied considerably throughout the year.
The World Gold Council’s October 6 report shows that Poland, China, Uzbekistan and Kazakhstan remained among the most active reported buyers. Their purchases helped sustain positive global net demand, even as other central banks reduced their holdings.
Poland and China account for substantial purchases
Poland added eight tonnes of gold in August, taking its purchases for the year to 98 tonnes and its total holdings to 648 tonnes. The country is approaching its stated target of 700 tonnes.
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China added 20 tonnes in August, its 22nd consecutive month of reported purchases. Its gold holdings reached approximately 2,387 tonnes, representing around 9% of its total reserves. China’s reported purchases for the first eight months of the year reached 80 tonnes.
Uzbekistan purchased eight tonnes in August, bringing its year-to-date additions to nearly 50 tonnes. Kazakhstan added seven tonnes, taking its purchases for the year to approximately 36 tonnes.
The figures show that buying remains concentrated among several countries with established accumulation programmes. They do not, however, establish that all central banks are responding to high prices in the same way.
Strong second-quarter demand followed a slow start
Central-bank gold demand strengthened sharply in the second quarter. According to the World Gold Council’s July 30 report, net purchases by central banks and other official institutions reached 289 tonnes in the quarter, compared with a revised 57 tonnes in the first quarter.
Despite that rebound, first-half net demand totaled 345 tonnes, the lowest first-half figure since 2022, when purchases reached 241 tonnes. Heavy selling by Turkey, Russia and Azerbaijan contributed to the weak opening period.
The scale of the revision to first-quarter data is also significant. The World Gold Council reduced its earlier estimate from 244 tonnes to 57 tonnes after incorporating new data and analysis. That adjustment demonstrates how reported central-bank demand can change as additional transactions and disclosures become available.
The first-half slowdown therefore does not necessarily indicate a collapse in official demand. Instead, the figures reflect a sharp difference between the first and second quarters, with purchases recovering as selling pressure moderated.
High prices have not stopped accumulation
Gold’s price history provides context for the continued buying. The World Gold Council reported that the metal reached a record $5,405 per ounce on January 29, 2026. By the end of September, it had fallen to $4,176 per ounce, an 8.5% decline during that month alone.
Despite that retreat, the September price remained substantially above levels recorded during much of 2025. Central banks continued reporting net purchases in August, before the September price decline, showing that elevated prices had not eliminated official-sector demand.
However, the data does not establish that central banks were buying specifically because prices were high or that they expected further gains. Reserve managers may consider diversification, geopolitical uncertainty, liquidity requirements and the composition of their existing assets when deciding how much gold to hold. The timing of purchases can also vary with individual institutions’ objectives.
Gold does not pay interest, unlike many government bonds, but it is not a financial liability issued by another government. That distinction can make bullion useful for reserve diversification, although its market price can fluctuate significantly.
Reserve managers still expect gold holdings to increase
The World Gold Council’s 2026 central-bank survey found that 89% of respondents expected global central-bank gold reserves to increase over the following 12 months. A record 45% expected their own institutions to increase gold holdings over the same period.
These responses indicate continued strategic interest in gold, but they are expectations rather than confirmed transactions. Actual purchases will depend on reserve decisions, market conditions and individual countries’ financial needs.
The contrast between survey sentiment and reported purchases is important. While the survey points to broad confidence in gold’s role within official reserves, the first-half figures show that net buying can still weaken when major holders sell. The outlook depends on the balance between buying and selling
Gold Reserves Can Protect an Economy
Gold gives central banks an alternative to foreign currencies and government bonds. Because it is not another country’s financial liability, it can help diversify reserves during geopolitical tensions, financial crises or disruptions to international payments.
However, gold cannot replace foreign currency needed to pay for imports and service overseas debt. Its market price can also fall, meaning large gold reserves do not automatically protect an economy from financial pressure.
What Central-Bank Gold Buying Means for Households
Continued central-bank demand can support gold prices, although it does not guarantee further increases. Higher prices benefit people who already own gold but make jewelry and other physical gold more expensive for new buyers.
For national economies, larger gold reserves can provide an additional financial buffer during periods of uncertainty. However, they cannot independently prevent inflation, currency depreciation or a debt crisis. Those outcomes also depend on government finances, foreign-exchange earnings and broader economic conditions.
For the gold market, continued central-bank accumulation remains an important source of demand. Whether it provides further support for prices will depend on how official purchases interact with investment flows, interest rates, currency movements and other sources of supply.
