Central Banks Bought 289 Tonnes of Gold in Q2 2026 Despite 14% Price Drop

According to the World Gold Council's Q2 2026 report published on July 30, central banks purchased a net 288.9 tonnes of gold in the second quarter, up 62% from 177.9 tonnes in Q2 2025, even as gold posted a 14.1% quarterly decline. Poland's National Bank led with 51 tonnes, bringing its reserves to 632 tonnes toward a 700-tonne target. China's People's Bank added 33 tonnes, its largest quarterly addition since Q4 2023, extending a 20-month consecutive buying streak, with total reserves reaching 2,346 tonnes.

A record 45% of surveyed central banks plan to increase holdings over the next 12 months, driven by reserve diversification, economic hedging, and de-dollarization concerns. The buying reflects long-term allocation strategies rather than price momentum—lower prices allow reserve managers to acquire more metal with the same budget. Central banks have averaged roughly 1,000 tonnes of annual purchases over the past four years.