Central Banks Stockpile Record Gold Reserves Amid Market Volatility

Central banks continued their gold buying trend in June 2026, purchasing 51 tonnes of gold. This brings the total accumulation for the second quarter to a record 289 tonnes, representing a 62% increase compared to the same period last year.

The buying activity remains concentrated among specific nations. Poland and China led the accumulation, with the National Bank of Poland being a consistent buyer, and the People's Bank of China sustaining its long streak of adding to reserves, viewing gold as a strategic asset to diversify away from traditional currency holdings.

On the other hand, some central banks have acted as net sellers. Russia and Turkey offloaded gold during the first half of 2026. For Russia, selling gold has become a method to manage budget deficits and navigate the impact of Western sanctions on its oil and gas revenues. Turkey’s activity has been linked to domestic currency defense.

The gold market experienced a correction in 2026, with prices retreating from their January peak of approximately $5,598 per ounce to settle in the $4,000 to $4,100 range by June. This decline reflects broader market adjustments as investors react to fluctuating US Federal Reserve interest rate policies and shifts in global bond yields.

While central bank buying provides stability, the outlook involves risks. Currently, 89% of reserve managers surveyed by the World Gold Council indicate an intent to increase their holdings over the next 12 months.