Central Banks Flood Gold Markets Amid Rate Uncertainty
Global central banks are increasingly turning to gold as a store of value, defying market expectations and rate jitters. According to data from the World Gold Council, net central bank purchases reached a record 288.9 tonnes in the second quarter of 2026, a 62% jump year on year.
China's reserves swelled by 20.2 tonnes in August, its largest single-month addition since October 2023, while Poland matched that ambition with roughly 8 tonnes over the same period, lifting its total for 2026 to 90 tonnes.
The buying spree has coincided with a steady build in exchange-traded fund holdings, which have expanded by a net 160 tonnes since the start of the year to an all-time high of 4,189 tonnes. Fund flows lend weight to predictions that gold will continue to outperform, with strategist Claudio Wewel at J. Safra Sarasin calling for prices to reach $4,600 an ounce by year-end and $5,000 by the end of 2027.