Central Banks Set New Gold Buying Record in 2026 Amid De-Dollarization Push
Central banks are continuing their aggressive gold-buying spree in 2026, driven by a broader trend of de-dollarization. In the second quarter of 2026 alone, central banks purchased a record 289 tonnes of gold, according to the World Gold Council. This marks the highest quarterly figure ever recorded and follows a four-year streak of annual purchases averaging around 1,000 tonnes. The dollar’s share of global reserves has also declined, falling to 56.7% in Q2 2026, down from a peak of over 72% in 2001, as reported by the IMF.
The shift away from the dollar is not an abrupt change but rather a gradual diversification strategy. A record 45% of central banks surveyed by the World Gold Council in 2026 plan to add more gold to their reserves within the next year, with 89% expecting global holdings to keep climbing. The 2022 freezing of $300 billion in Russian reserves has significantly influenced this trend, highlighting the risks associated with relying on a single reserve currency. Gold, held in a country’s own vaults, is seen as a safer asset because it does not depend on the goodwill of another government.
Despite a recent pullback in gold prices, trading in the mid-$4,100s in early October 2026, down roughly 5% from its September record, the institutional data suggests no slowdown in official-sector buying. Central banks are executing multi-year plans rather than reacting to short-term price movements. For example, Poland added 82 tonnes in 2026, Turkey added 45 tonnes in January, and China reported a 20-tonne addition in July, marking its 21st straight month of buying. These moves reflect a strategic diversification rather than a flight from the dollar.
The dollar remains the dominant reserve currency, but its share has been gradually declining. The euro’s share has remained steady, while gold’s share of global reserves has nearly doubled over the past quarter-century. The key takeaway is that central banks are diversifying their reserves to mitigate geopolitical risks, not abandoning the dollar entirely. This trend is expected to continue, with the World Gold Council forecasting 850 tonnes of central bank purchases for 2026.