Central Banks Load Up on Gold as Prices Plummet

Central banks around the world made a striking move in Q2 of 2026. Despite gold experiencing its steepest quarterly price decline in a decade, they bought more of it than any previous quarter on record.

The World Gold Council's Gold Demand Trends report for Q2 2026 revealed that central banks added a net 289 tonnes of gold during the period - a 62% year-over-year increase and the strongest second quarter in recorded history.

This is significant because it shows that central banks are systematically rotating out of dollar-denominated assets and into gold, regardless of price fluctuations. The WGC's Central Bank Gold Reserves Survey found that 89% of reserve managers expect global central bank gold holdings to rise over the next 12 months, with 45% planning to increase their own institution's reserves.

The shift away from dollars is a long-term trend, with gold's share of global foreign exchange reserves rising steadily. Poland and China led the way in Q2, with the National Bank of Poland adding 51 tonnes and the People's Bank of China purchasing 33 tonnes.