Central Banks Hoard Record Gold as Institutional and Retail Sentiment Diverge

Gold's price has been fluctuating wildly over the past week, but one thing is clear: central banks are buying up more of it than ever before. Official sector holdings have surpassed 36,664 tonnes, representing a record-breaking 16.7% of all gold mined in history.

The United States remains the largest holder, with 8,133 tonnes worth approximately $1.06 trillion at current prices. Other countries, such as Poland, are also increasing their reserves rapidly, adding 63.6 tonnes just this year alone.

Despite the price action being anything but orderly, a structural shift in central banks' gold buying habits is underway. According to a survey by the World Gold Council, 89% of central banks expect to increase their holdings over the next year, with net purchases reaching as high as 41 tonnes in May.

However, there's a stark contrast between institutional and retail investor sentiment. A survey of Wall Street professionals reveals deep skepticism, while online retail investors are more optimistic, expecting further gains.