Central Banks Shift Gold Buying Strategy Amid Macro Headwinds Easing

Central banks are no longer just buying gold as a background bid, but are now actively accumulating it at a rate of around 100 tonnes per month. This shift in behavior is driven by a change in the way reserve managers think about gold ownership, from simply diversifying their reserves to also considering where they want to store their gold and under whose jurisdiction.

The easing of macro headwinds, particularly with softer U.S. inflation and weaker payrolls, has allowed Western capital to re-enter the market, reconnecting with a central bank that was already buying on weakness. This has created an opportunity for shorts to be caught out by sovereign buyers who are treating price weakness as an invitation to accumulate more gold.

Goldman Sachs estimates that official-sector purchases reached 57 tonnes in June, with China accounting for a large chunk of the identifiable demand. Reserve managers are diversifying their custody locations, holding gold across several jurisdictions to preserve liquidity while reducing dependence on a single custodian or legal regime.