Central Banks Hoard Gold as Traders Bet on Fed Policy
Gold is navigating an unusually divided market landscape, where central banks are stockpiling bullion at a historic pace while short-term traders focus on Federal Reserve policy. Central banks have been buying gold aggressively, with net purchases of 289 tonnes in the second quarter and no signs of letting up.
China added another 20 tonnes in July to reach a record 2,377.5 tonnes, bringing Beijing's accumulation this year to 60 tonnes. Poland has also been aggressive, adding 82 tonnes in 2026 to reach 632 tonnes. The Netherlands' central bank DNB relocated 86 tonnes of gold from New York and Canada to London between March and August to improve the usability and tradability of its reserves.
However, hawkish comments from Fed Chair Kevin Warsh reinforced the case for a rate increase ahead of the September meeting, causing market volatility. The spot price climbed 0.8 percent on Thursday to $4,423.28 per ounce, but traders remain focused on the Fed's next move.