Central Banks Snag Record Amount of Gold Amid Ongoing Turmoil

Central banks made an unexpected move in Q2, buying a record 289 tonnes of gold. This surge is surprising because central banks usually operate quietly and slowly. In Q1, they bought only 57 tonnes.

The World Gold Council attributes the increased demand to gold's role as a long-term store of value, which continues to feature prominently in central bank thinking. The geopolitical environment and lower bullion prices also likely supported the surge.

Not all countries are buying gold, however. Turkey, Russia, and Azerbaijan were among the leading sellers in the first half of the year. Regular investors in the Middle East did join in, with Kuwait reporting a 25% rise in demand and Saudi Arabia seeing a 23% jump.