Central banks accelerated their gold acquisitions in the first quarter of 2026, marking the fastest pace in over a year. Net official-sector purchases reached 244 tons during this period, an increase from 208 tons in the previous quarter, according to estimates from the World Gold Council. This buying spree occurred as a slump in gold prices made the commodity more attractive, outweighing sales from a few institutions.
The primary drivers of this increased demand were Poland, Uzbekistan, and China, identified as the largest reported buyers. While these nations publicly disclosed their acquisitions, the World Gold Council noted that some other purchases remained undeclared. This surge in central bank buying suggests a continued strong institutional interest in gold, despite some reports earlier in the year suggesting a slowdown.
In a related development, a survey of 74 central banks indicated that 45% plan to increase their gold holdings in the coming year, the highest share since 2018. Only one central bank surveyed expressed an intention to reduce its gold reserves. This highlights a persistent trend of central banks viewing gold as a crucial component of their reserves, aiming to raise the floor under gold prices on dips, even if it doesn't prevent drawdowns. This outlook suggests that structural demand for gold remains robust, with central bank buying being a significant factor.
