Central Banks Fuel Gold Price Rally With Record Buying Spree
The gold price has seen another strong phase in 2026, and central banks are playing a significant role in this rally. According to the World Gold Council, central banks bought 288.9 tonnes of gold in Q2 2026, a 62% increase from the same quarter last year.
China is one of the key players, with the People's Bank of China adding nearly 20 tonnes of gold in July 2026, its largest monthly purchase since October 2023. This marks China's 21st consecutive month of expanding its gold reserves.
The value of China's gold reserves also rose to $306.35 billion in July, compared to $303.72 billion the previous month. Poland is another significant buyer, with a target of 700 tonnes of gold and a steady increase in purchases.
Central banks' demand for gold has been steadily rising over the past four years, with an average annual purchase of around 1,000 tonnes. This shift in reserve policy reflects central banks' growing recognition of gold as a valuable asset for diversification, protection against financial risks, and strengthening national reserve security.