Central Banks' Gold Buying Slips as Investment Demand Rises

Central banks' gold buying fell by over half in July to 23 metric tons from 51 tons in June, according to World Gold Council figures. This decline occurred even as gold hovered near all-time peaks.

The main buyers were China and Poland, adding 20 tons and eight tons respectively. Russia offloaded six tons, while Turkey, Jordan, and Uzbekistan each disposed of roughly one ton.

Despite the pullback, investment demand remains strong, with physically backed gold ETFs worldwide drawing $3 billion in net inflows during July. This snapped two consecutive months of redemptions, according to fund data.

The WGC's outlook sees investment as the main engine of gold-demand expansion for the remainder of 2026, with central banks still heading for a robust year of net buying even if full-year totals trail 2025.