Central banks purchased a net 288.9 tonnes of gold in the second quarter of 2026, a 62% increase from the 177.9 tonnes bought in Q2 2025, according to the World Gold Council's Gold Demand Trends Q2 2026 report published on 30 July. The purchases occurred as gold posted a 14.1% quarterly decline, the steepest drop since Q2 2013, with the metal closing Q2 at $4,008 per ounce. Reserve managers pursued long-term allocation targets rather than short-term price momentum, with Poland's National Bank leading Q2 purchases at 51 tonnes and China's People's Bank adding 33 tonnes. The buying pattern illustrates that when prices fall, the same dollar budget buys more metal, making dips an opportunity for allocation-driven buyers. The Q2 activity brought first-half 2026 central bank purchases to 345 tonnes, with the WGC's 2026 survey finding that a record 45% of central banks plan to increase gold holdings over the next 12 months.
Poland and China Lead Q2 2026 Gold Purchases
Poland's National Bank led Q2 2026 with 51 tonnes, bringing its first-half total to 82 tonnes and its reserves to 632 tonnes, according to the National Bank of Poland's reserve data. NBP Governor Adam Glapiński told Kitco News: "We've been consistently buying gold, taking advantage of the recent price drops. This reflects the state's role in ensuring the security of Poland." The NBP's target remains 700 tonnes, with Bloomberg reporting that the bank approved a plan to buy 150 tonnes in January 2026.
China's People's Bank added 33 tonnes in Q2, its largest quarterly addition since Q4 2023, extending a 20-month consecutive buying streak. Total PBoC reserves reached 2,346 tonnes by the end of June, though gold still represents less than 10% of China's $3.42 trillion reserve portfolio, according to official data compiled by IndexBox. Uzbekistan purchased 16 tonnes, Kazakhstan 15 tonnes, Jordan 6 tonnes, and the Czech Republic 6 tonnes. Russia and Turkey were net sellers, shedding 22 and 4 tonnes respectively.
Gold Prices Fell 14.1% in Q2 2026
The Q2 buying spree occurred as gold closed at $4,008 per ounce, more than $1,500 below its all-time intraday high set in late January 2026. On 24 June, gold briefly traded below $4,000 for the first time since November 2025, and the Q2 average price was $4,506.29 per ounce, according to the LBMA PM fix cited by the WGC. Poland's target of 700 tonnes and China's systematic monthly additions illustrate the mechanism: when prices fall, the same dollar budget buys more metal, making dips an opportunity rather than a deterrent.
Jewellery Demand Dropped 17% Year Over Year
While central banks accumulated, other buyers pulled back. Jewellery consumption fell 17% year over year to 278.2 tonnes, the lowest quarterly volume since the pandemic, the WGC reported. High prices and inflationary pressures squeezed affordability across key markets, particularly in price-sensitive Asian economies where gold jewellery demand is culturally significant. Gold-backed ETFs recorded 44.8 tonnes of outflows in Q2, reversing a strong first quarter. Bar and coin investment held roughly steady at 307.1 tonnes. Total gold demand came in at 1,269 tonnes, flat year over year.
Supply matched at 1,268.9 tonnes, with mine production rising 2% to 965.6 tonnes while recycled gold fell 6% to 326.1 tonnes. The first half of 2026 reached 2,522 tonnes, up 2% and valued at a record $380 billion.
WGC Survey Finds 45% of Central Banks Plan to Increase Holdings
The WGC's 2026 Central Bank Gold Reserves Survey, which drew a record 76 responses, found that a record 45% of central banks plan to increase their own gold holdings over the next 12 months. A further 89% expect global central bank gold reserves to rise. Shaokai Fan, Global Head of Central Banks at the WGC, told Kitco News: "Central banks are still very positive on gold. In fact, more positive than ever." The top motivations cited by the 34 banks planning increases were reserve diversification, hedging against economic risks, and concerns about reserve-currency economies.
Central banks have averaged roughly 1,000 tonnes of annual gold purchases over the past four years, double the pace of the prior decade. With 345 tonnes purchased in the first half of 2026, matching that recent annual average would require roughly 655 tonnes of additional buying in the second half. The WGC's Louise Street, Senior Markets Analyst, wrote in the Q2 report that "the market remained well supported" despite the price correction.
FAQ
How much gold did central banks buy in Q2 2026?
Central banks purchased a net 288.9 tonnes of gold in Q2 2026, a 62% increase from the 177.9 tonnes bought in Q2 2025, according to the World Gold Council's Gold Demand Trends Q2 2026 report published on 30 July.
Which central bank bought the most gold in Q2 2026?
Poland's National Bank led Q2 2026 with 51 tonnes, bringing its first-half total to 82 tonnes and its reserves to 632 tonnes, according to the National Bank of Poland's reserve data. China's People's Bank added 33 tonnes, its largest quarterly addition since Q4 2023.
Why did central banks buy gold despite a 14% price drop in Q2 2026?
Reserve managers pursued long-term allocation targets rather than short-term price momentum. When prices fall, the same dollar budget buys more metal, making dips an opportunity for allocation-driven buyers. Poland's NBP Governor Adam Glapiński told Kitco News: "We've been consistently buying gold, taking advantage of the recent price drops."
