Gold Market Split as Central Banks Stockpile Record Amounts

The gold market is experiencing two opposing trends. On one hand, central banks have recorded their most aggressive second-quarter buying spree on record, purchasing around 289 tonnes of gold in Q2 2026.

This buying spree was led by China and Poland, with the Bank of Korea making headlines for stepping back into the market after a 13-year absence. The Bank of Korea's decision is seen as a potential inflection point for Asian official demand.

The timing of these purchases is significant, as central banks have been using softer price patches to build positions. They view gold as an anchor for reserves in times of geopolitical friction and sanctions uncertainty, as it carries no counterparty risk.

However, the spot price has slipped 1.1% to $4,423.60 per ounce due to rising bond yields and profit-taking. The rise in ten-year US Treasury yields makes gold less appealing, while firmer oil prices stoke inflation concerns and expectations of tighter Federal Reserve policy.