Central Banks' Gold Buying Falls Short of Estimates

Central banks' gold buying has fallen short of earlier estimates, according to revised figures from the World Gold Council (WGC). The council initially reported that central banks purchased 187 metric tons less than previously estimated in the first quarter. This marked the weakest start to a year for official demand in over a decade.

The WGC's data, compiled using research from Metals Focus and combining official reserve data, trade statistics, and field analysis, suggests that overall official-sector demand is likely to fall short of last year's pace. Despite this, central bank purchases recovered sharply in the second quarter, reaching 289 tons, the strongest second quarter on record.

Poland remained the largest buyer, adding 51 tons during the quarter and increasing its first-half purchases to 82 tons. China also continued expanding its reserves, acquiring 33 tons during the period. The sharp revision to first-quarter figures indicates that overall purchases in 2026 are likely to remain below 2025 levels.

The gold market has been impacted by higher energy prices fueled inflation concerns and prompted investors to scale back expectations for interest rate cuts. Gold has fallen about 25% since the outbreak of the Iran conflict in late February, trading near $4,039 per ounce.