Central banks worldwide are quietly amassing gold at an unprecedented rate, signaling a shift in global financial strategies amid rising geopolitical tensions. Goldman Sachs reported that central banks purchased 79 tonnes of gold in August 2026, more than four times the pre-2022 average of 17 tonnes. On a three-month seasonally adjusted basis, purchases are running at 85 tonnes per month, highlighting a significant uptick in demand.
China appears to be a major driver of this trend, acquiring 25 tonnes in August alone. However, Goldman Sachs notes that other economies could be buying even more, though China remains underweight in gold relative to long-term allocations. The motivations for diversifying away from G7 reserve currencies, particularly the U.S. dollar, are expected to persist.
Domestic central banks, which already hold substantial gold reserves, are now focusing on where to store their assets. This shift points to broader concerns around reserve security and cross-country trust. For instance, the Dutch central bank recently reallocated 86 tonnes of gold from New York and Ottawa to London, citing geopolitical unrest and the need for better crisis preparedness.
The Banque de France also sold 129 tonnes of gold in New York, opting to purchase gold in Europe instead, though it attributed the move to purity standards rather than geopolitical factors. Central bank holdings at the New York Fed declined by 40 tonnes in August, while holdings at the Bank of England rose by 46 tonnes. Goldman Sachs' survey revealed that more central banks are diversifying their overseas storage and increasing domestic storage.