Central Banks Boost Gold Reserves Amid Geopolitical Uncertainty

Global gold demand stabilized in Q2 2026 after a strong rally in Q1. According to the Gold Demand Trends Q2 2026 report, investment in gold ETFs, bars, and coins fell to 262 tonnes as the lower gold price tempered earlier momentum.

However, central banks and other official institutions increased their gold reserves by a net 289t in Q2, up 62% year-over-year. This rebound can be attributed to geopolitical uncertainty stemming from the conflict in the Middle East in February.

'The gold price increased significantly, and then it came down,' said Juan Carlos Artigas, Global Head of Research at the World Gold Council (WGC). 'As a result, we saw some degree of selling or swapping gold by a couple of central banks.'

Despite a net positive quarter for central banks in Q1, their buying pace was still lower than average. However, with the price stabilizing, Artigas noted that the underlying need for gold remains, particularly for diversification and hedging against uncertainty.