Central Banks Boost Gold Reserves Amid Geopolitical Uncertainty

Global demand for gold steadied in the second quarter of 2026 as prices softened after a strong first quarter. Investment in gold ETFs, bars, and coins dropped to 262 tonnes, tempered by the lower gold price, according to the Gold Demand Trends Q2 2026 report.

The World Gold Council's Global Head of Research, Juan Carlos Artigas, notes that central banks have increased their pace of buying since 2022. In the second quarter of this year, they added a net 289t to reserves, up 62% year-on-year, as buying picked up across several markets.

This rebound can be partly attributed to geopolitical uncertainty stemming from the Middle East conflict in February. Artigas affirms that 'geopolitical risk does have an influence on gold prices,' with an increase in risk positively impacting demand through investment and central bank buying.