Central Banks Buy 289 Tonnes of Gold in Record Quarter

Global central banks recorded record gold purchases of 289 tonnes in the second quarter of 2026, surpassing previous records set over the past year, confirming a long-term structural trend toward diversifying international reserves away from the US dollar.

This record buying spree was led by central banks in emerging markets, particularly in Asia, Eastern Europe, and a number of Arab countries, which view gold as a safe haven against US currency fluctuations and financial sanctions that have increasingly become a frequently used geopolitical weapon.

Central bank purchases provide structural support for gold that fundamentally differs from speculative demand, as these institutions do not sell during panic nor are they affected by daily sentiment shifts, thereby establishing price stability and reducing vulnerability to sudden sell-offs.

World Gold Council experts emphasize that this official institutional demand is the most sustainable in the history of the gold market, and its continuation is altering the structural supply-and-demand equation while raising the expected price floor in the coming years.

What do these terms mean?

Gold Reserves: The quantities of gold held by central banks in their vaults as part of their international reserves. Gold is used to safeguard the value of the national currency and boost confidence in the economy's stability.

Reserve Diversification: A policy adopted by central banks to distribute their reserves across multiple assets (dollar, euro, gold, yuan...) rather than relying on a single currency. Its importance has grown with the rising use of financial sanctions.

Structural vs. Speculative Demand: Structural demand is steady and long-term, such as central bank buying. Speculative demand is volatile and short-term, such as hedge fund trading. The dominance of structural demand makes the market more stable.