Central Banks Are Keeping Gold at the Center of Global Reserves

Central banks bought 289 tonnes of gold in Q2 2026, up sharply from the revised 57 tonnes recorded in Q1, according to the World Gold Council.

Poland and China were among the major buyers as official-sector purchases accelerated again through the quarter.

The buying returned while gold was trading at elevated prices and global markets were still absorbing currency, inflation and geopolitical risk.

Central banks are adding metal again even after a weak start to 2026, putting official demand back behind the gold market as investors return as well.

Geopolitical Risk Is Still Showing Up in Central-Bank Gold Buying

Poland added 51 tonnes of gold in Q2, lifting its holdings to 632 tonnes by the end of June. China bought 33 tonnes during the quarter, while Uzbekistan added 16 tonnes and Kazakhstan 15 tonnes.

Jordan and the Czech Republic each increased their reserves by 6 tonnes, with further purchases reported from Ghana, Singapore, the United Arab Emirates and Kyrgyzstan.

The buying stretched across Europe, Asia, the Middle East and Africa rather than sitting within one reserve bloc.

Central banks with different currencies, trade exposures and reserve profiles continued to add gold, keeping official demand broad through the quarter.

From Poland and China to Jordan, Ghana and Singapore, gold remained an active part of reserve allocation in Q2.

Gold Supply Is Still Responding Slowly to Higher Prices

Gold mines produced 966 tonnes in Q2, 2% more than a year earlier. Total supply reached 1,269 tonnes, barely above last year’s level, as lower recycling absorbed much of the gain from miners. Gold prices have moved far faster than physical output.

Newmont expects about 5.3 million attributable ounces in 2026, while Barrick is targeting 2.90 million to 3.25 million ounces.

Much of the additional output is tied to mines already running and expansions approved before the latest rally in bullion.

New projects take years to reach production, so most of the extra gold available in 2026 will come from mines and expansions already underway.

Inflation and U.S. Rates Are Still Shaping Reserve Decisions

U.S. consumer inflation eased to 3.4% in July from 3.5% in June, while core inflation fell to 2.5%.

Producer prices were flat in July and stood 4.7% above a year earlier. The Federal Reserve has kept its policy rate at 3.5% to 3.75% as officials wait for more evidence from inflation and growth data.

In the World Gold Council’s 2026 survey, 89% of respondents said they expect global official gold holdings to rise over the next 12 months.

Another 45% expect their own institutions to increase holdings. These are survey expectations, not completed transactions, but gold remains firmly inside reserve planning as financial conditions shift.

Central-Bank Gold Demand Is Still Embedded in Global Reserves

Central banks are carrying larger gold positions through changing rate cycles, currency moves and weaker quarters of buying. The significance now sits as much in what they continue to hold as in what they add.

Mine output is rising only slowly, while official portfolios still contain substantial gold allocations. Into the second half of 2026, the market will be watching whether those holdings remain in place even when quarterly purchases cool.

That will say more about gold’s position in global reserves than any single quarter of buying.