Central Banks Fuel Gold Buying Spree Amid Price Volatility
Gold prices have been trading within a consolidation zone in recent months, remaining relatively stable despite a decline of 11% over the last six months. Despite this, gold's price has almost returned to its level at the start of the year.
The World Gold Council reported that central banks continued their gold buying spree in June, purchasing 51 tonnes. Poland and China led the accumulation with purchases of 19 tonnes and 15 tonnes, respectively. Uzbekistan, Kazakhstan, Jordan, Czech Republic, Ghana, and Georgia also made notable purchases, while Russia and Turkey sold a combined total of 83 tonnes and 44 tonnes, respectively.
Poland has emerged as the top buyer of gold this year, accounting for 82 tonnes of total purchases. China follows closely with 40 tonnes, while Uzbekistan and Kazakhstan have purchased 41 tonnes and 27 tonnes, respectively. Other notable buyers include Czech Republic, Singapore, Chile, Jordan, Ghana, and Turkey.
Indian central banks, on the other hand, have been selective in their gold buying. The Reserve Bank of India's (RBI) gold holdings remain steady at 880 tonnes since mid-2025, with a corresponding increase in gold's share of total reserves from 12% to 16%. Indian gold demand decreased by 6% year-on-year to 131 tonnes in the second quarter, while investment demand fell to 54 tonnes.