Central Bank Gold Buying in 2026: Who Is Buying and Why?

A Global Gold Rush With Very Different Motives

The World Gold Council's September 3 report shows that central banks remain active in the gold market, although their reserve strategies are moving in different directions. Official institutions bought a net 23 tonnes in July, with reported purchases reaching approximately 130 tonnes through the first seven months of 2026.

Poland remains the largest reported buyer, China has extended its buying streak to nearly two years, and South Korea has returned to gold exposure after a 13-year pause. Russia and Turkey, by contrast, have been substantial net sellers. The divergence illustrates how differently countries use gold: one may be diversifying its reserves, another protecting against geopolitical or inflation risks, while a third may sell existing holdings to meet liquidity or monetary-policy needs.

Central Bank Gold Buying Continues at an Uneven Pace

Reported central bank purchases reached approximately 130 tonnes through July, compared with about 160 tonnes during the same period in 2025. The quarterly figures show why that total needs context. Selling by several institutions weighed on first-quarter activity before demand rebounded sharply in the second quarter, when central bank net demand reached 289 tonnes, five times the revised first-quarter estimate and a record for any second quarter.

The uneven pace does not necessarily indicate weakening long-term interest in gold. Central banks operate according to their own reserve composition, currency requirements, domestic monetary conditions and geopolitical priorities. World Gold Council survey data reinforce that distinction: 89% of participating central banks expected global official gold reserves to increase over the following 12 months, while a record 45% expected their own institution's holdings to rise.

Poland and China Lead Gold Purchases in 2026

The National Bank of Poland is the largest reported central bank gold buyer this year. It added another 8 tonnes in July, bringing 2026 purchases to approximately 90 tonnes and total holdings to about 640 tonnes. Gold now represents roughly 28% of Poland's reserves, putting the central bank within reach of its stated 700-tonne target. Its continued purchases, even after gold reached historically elevated prices, suggest a deliberate reserve-allocation strategy rather than an attempt to time short-term market movements.

China ranks second among reported buyers. The People's Bank of China added 20 tonnes in July, its largest monthly purchase since late 2023, bringing reported 2026 additions to approximately 60 tonnes. July also extended China's buying streak to 21 consecutive months. Official holdings reached about 2,366 tonnes, representing roughly 8% of total reserves.

The sustained Chinese accumulation fits a broader diversification strategy. Gold can reduce dependence on any single foreign currency or sovereign issuer, an attribute that has become more relevant as economic relationships among major powers grow increasingly fragmented. China's purchases are therefore notable not only for their size, but for their persistence across changing gold prices and market conditions.

South Korea Returns to Gold After 13 Years

One of the year's more unusual developments comes from the Bank of Korea, which allocated an estimated $250 million to gold-backed exchange-traded funds, equivalent to roughly two tonnes of gold exposure. It represents the central bank's first new gold allocation in 13 years and stands out because official reserve managers have traditionally favored physical bullion or over-the-counter transactions.

Gold-backed ETFs can provide liquid exposure without requiring the same immediate custody arrangements associated with physical purchases. The Bank of Korea has also announced plans to purchase domestically refined gold, pointing toward a broader effort to diversify reserves and hedge against inflation and geopolitical risks.

South Korea is not alone in expanding its exposure. Malaysia, Bolivia and Kazakhstan reported purchases in July, while the Czech National Bank extended its uninterrupted net-buying streak to 41 months. Namibia is working to increase gold from approximately 1% to 3% of its reserves by March 2027. Individually, these allocations may be small compared with China or Poland, but together they show that the central bank gold story extends well beyond the largest buyers.

Why Are Russia and Turkey Selling Gold?

Strong official-sector demand does not mean every central bank is accumulating. Russia sold another 6 tonnes in July, bringing reported net sales for 2026 to approximately 50 tonnes and reducing its holdings to around 2,277 tonnes. Turkey sold another tonne during July and has recorded approximately 85 tonnes of net sales this year.

Those sales should not automatically be interpreted as bearish forecasts for gold. Official reserves are working financial assets, and central banks may draw on them for liquidity, foreign-currency requirements, monetary operations or portfolio rebalancing. Countries that already own substantial quantities also have greater flexibility to sell while retaining significant strategic exposure to the metal.

Uzbekistan demonstrates why this context matters. Gold represents an unusually large portion of its reserves, and although the country remains a net buyer in 2026, its central bank has indicated that it could sell at favorable prices as part of normal reserve management. Purchases and sales therefore reveal as much about a country's existing portfolio and financial requirements as they do about its view of the gold market.

Why Gold Still Appeals to Central Banks

Gold occupies an unusual position among reserve assets because it does not represent a credit claim on another government, bank or corporate issuer. It is globally recognized, actively traded and capable of diversifying portfolios dominated by sovereign bonds and foreign currencies. Those characteristics have become increasingly relevant amid geopolitical conflict, inflation uncertainty, sanctions, currency volatility and changing relationships among major economic powers.

Reserve diversification remains one of the primary motivations for official-sector demand. Gold can reduce reliance on individual currencies while providing an asset with different risk characteristics from conventional foreign-exchange reserves. For some countries, geopolitical resilience or inflation protection may carry greater weight; for others, liquidity and the ability to rebalance reserves are more important.

Where that gold is held also matters. Central banks increasingly consider whether reserves should remain in international financial centers, be stored domestically or be distributed among several locations. Taken together, these considerations explain why Poland can pursue an explicit accumulation target while Russia or Turkey sells part of an existing stockpile. Both decisions can make sense within very different reserve strategies.

What Central Bank Demand Means for Gold Investors

Central banks are an important source of demand, but they are only one force influencing the gold price. Interest rates, Treasury yields, the U.S. dollar, investment flows, geopolitical developments, jewelry consumption, mine production and recycling can all move the market, particularly over shorter periods.

Persistent official buying nevertheless strengthens gold's longer-term demand backdrop. Many central banks have continued purchasing at historically elevated prices, suggesting they view gold as a strategic reserve asset rather than something worth owning only when it appears inexpensive. The World Gold Council expects central banks to remain substantial net buyers through the rest of 2026, even if annual demand finishes below the 2025 total.

Country-level activity provides the more revealing story. Poland is working toward a specific reserve target, China continues a sustained diversification program, and South Korea has returned to gold after more than a decade. Smaller institutions are also increasing exposure, while Russia and Turkey demonstrate that accumulated gold can be put to use when reserve-management needs change.

For investors, the question is therefore broader than whether central banks are buying gold. Which countries are accumulating, which are selling, and why? The answer offers a clearer view of gold's evolving place in the international monetary system—and helps explain why official-sector demand remains an important part of the market in 2026.

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