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Central banks bought 288.9 tonnes of gold in Q2 2026, up 62% from a year earlier.
China added nearly 20 tonnes in July, its largest monthly purchase since October 2023.
A record 45% of surveyed central banks expect their own gold reserves to rise over the next 12 months.
Gold has entered another strong phase in 2026, and central banks remain one of the clearest reasons for the market's long-term strength. The latest data show that official demand has stayed high even after gold faced a sharp correction from its record level. This matters more than a short burst of investor demand, since central banks usually buy gold as part of a long-term reserve strategy.
The World Gold Council reported that central banks bought 288.9 tonnes of gold in the second quarter of 2026. That figure stood 62% above the same quarter last year and marked a sharp recovery from the revised 56.5 tonnes recorded in the first quarter. The Q2 figure also returned official demand to the strong levels seen over the past four years.
Gold also remained far more valuable than a year earlier. The average LBMA gold price reached $4,506.29 per ounce in Q2 2026, which was 37% above the Q2 2025 average. The price did fall 8% from the Q1 average, yet central banks continued to add gold at a strong pace.
China has emerged as one of the most important official buyers. The People's Bank of China added almost 20 tonnes of gold in July 2026, its largest monthly addition since October 2023. The purchase extended China's gold reserve expansion to 21 consecutive months.
China's official gold reserves reached 76.08 million fine troy ounces at the end of July, up from 75.44 million ounces in June. The July increase came to 640,000 ounces, or nearly 20 tonnes. The value of China's gold reserves also rose to $306.35 billion, compared with $303.72 billion a month earlier.
The pace has also become stronger. The PBOC added 160,000 ounces in March, 320,000 ounces in April, 320,000 ounces in May, 480,000 ounces in June and 640,000 ounces in July. This steady rise shows a clear return to stronger official demand from China.
China is not alone. Poland has become one of the largest official gold buyers in 2026. Poland added 82 tonnes during the first half of the year, while Uzbekistan added 41 tonnes. China added 40 tonnes, and Kazakhstan added 27 tonnes during the same period.
Poland's reserve strategy deserves special attention. The country has set a target of 700 tonnes of gold, and its purchases have moved it closer to that goal. Such a policy can create a steady source of demand even when gold prices remain high.
Other central banks have also added gold. The Czech Republic bought 11 tonnes in the first half, while Singapore added 10 tonnes. Chile bought 8 tonnes, and both Jordan and Ghana added 6 tonnes. The wide range of buyers shows that official demand does not rely on one country alone.
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The bigger story sits beyond the latest monthly data. The World Gold Council says central banks have accumulated an average of about 1,000 tonnes of gold each year over the past four years. The average stood near 500 tonnes per year during the previous decade.
That change marks a major shift in reserve policy. Central banks now give gold a larger role as a reserve asset. Gold offers diversification, protection during crises and a hedge against inflation. It also carries no direct credit risk from another government.
The 2026 World Gold Council survey gives more evidence of this trend. The survey received responses from 76 central banks, the highest number in its nine-year history. A strong 89% of respondents expect global central-bank gold reserves to rise over the next 12 months. A record 45% expect their own gold reserves to rise during the same period.
The survey also shows a clear change in the global reserve mix. Around 74% of respondents expect the U.S. dollar share of global reserves to fall moderately or significantly over the next five years. At the same time, central banks expect gold to gain a larger role.
This does not mean central banks plan to replace the dollar with gold. The shift looks more like a move toward a broader reserve mix. Gold can offer a neutral asset that does not depend on the credit of another country.
That factor has become more important after several years of geopolitical tension, trade disputes and concern over sovereign debt. Central banks now place greater value on assets that can protect reserve portfolios during periods of global stress.
Central-bank purchases do not explain every daily move in gold. Short-term price changes still depend heavily on U.S. interest-rate expectations, Treasury yields, the dollar, geopolitical events and investor flows.
The latest rally shows this clearly. Gold rose more than 7% during the week that ended August 7 after weak U.S. jobs data reduced expectations for further Federal Reserve rate hikes. Spot gold traded above $4,310 per ounce in early August.
Central-bank demand plays a different role. It creates a steady source of physical demand that can help limit the depth of major price declines. Reuters also reported in July that analysts expect central-bank purchases to cushion gold if the market faces another retreat.
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The most important point is not that central banks can push gold higher every day. Their greater importance comes from the long-term change in reserve policy.
Central banks have continued to add gold at prices that once would have looked extremely high. China has accelerated its purchases, Poland continues to expand reserves, and the World Gold Council survey shows strong official interest for the year ahead.
Gold therefore has more than short-term market support. A structural source of official demand now sits underneath the market. If central banks maintain purchases close to recent levels while investor demand improves, gold can retain a strong foundation for the next phase of its rally.
The latest numbers show a clear message: central banks no longer treat gold as a small reserve asset. They increasingly treat it as an important part of national financial security. That shift can keep official demand strong and give the gold market a durable source of support even when prices face sharp corrections.
1. Why do central banks buy gold?
Central banks use gold to diversify reserves, protect against financial risks and strengthen national reserve security.
2. How much gold did central banks buy in Q2 2026?
Central banks bought 288.9 tonnes in Q2 2026, a 62% rise from the same quarter last year.
3. How much gold did China buy in July 2026?
China added nearly 20 tonnes in July, its largest monthly purchase since October 2023.
4. Does central bank demand directly push gold prices higher?
Central bank demand can create a strong long-term base for gold, while interest rates, the dollar, investor flows and geopolitical events often drive short-term price moves.
5. Will central banks continue to buy gold?
The outlook remains strong. The World Gold Council found that 89% of surveyed central banks expect global gold reserves to rise over the next 12 months.
