Central Banks Fuel Gold Demand Surge
The gold market is experiencing a significant surge in demand from central banks and other institutional investors. Goldman estimates that on a three-month seasonally adjusted basis, central bank purchases are running at 91 tonnes per month, which is a sharp recovery from the pause seen early in 2026.
This increase in demand has pushed the underlying price structure upward. The trend of central bank purchases has returned to levels far above the pre-2022 norm, indicating a strong interest in gold among reserve managers and institutional investors.
Interestingly, Goldman estimates that China bought 35 tonnes of gold in July, which is almost twice the officially reported 19.9 tonnes. This discrepancy highlights the importance of considering unofficial data when analyzing the gold market.