Central Banks Load Up on Gold Amid Market Turmoil

Central banks around the world have made a significant investment in gold reserves during the second quarter of 2026. According to the World Gold Council, they bought a record 289 tonnes of gold while prices were falling, marking a 62% increase from the same period last year.

The National Bank of Poland led the way with 51 tonnes, followed by China and Uzbekistan, which added 33 and 16 tonnes respectively. This large-scale buying was done despite gold's worst quarterly price drop since 2013, which saw prices fall by about 16%.

Experts say that this move by central banks is a sign of their desire to diversify their reserves and protect themselves against market shocks and inflation. The World Gold Council attributes the increased demand for gold to geopolitical uncertainty, softer prices, and long-running reserve diversification goals.

The price of gold has since rebounded in August, reaching $4,640.80 on August 24 before touching a three-month high near $4,700 this week. J.P. Morgan's global research team forecasts that the price will average $6,000 an ounce by the fourth quarter of 2026.