Reserve managers do not buy gold the way markets do, and the second quarter showed it plainly.
Key points
- Central banks added a net 289 tonnes in Q2 2026, a record for a second quarter.
- That was roughly a fivefold increase on the first quarter's revised figure of 57 tonnes.
- Poland and China led the buying; Russia was the only sizeable seller.
- 89% of reserve managers surveyed in June expect official gold holdings to keep rising.
What the figures say
The World Gold Council published its Gold Demand Trends report for the second quarter on 30 July 2026. Central bank net demand came in at 289 tonnes, up sharply on the first quarter and the strongest second quarter in the series. Poland and China accounted for much of it, with sales moderating after a first quarter in which Turkey, Russia and Azerbaijan had all been sellers.
Why buying rose as the price fell
Gold retreated during the quarter after the rally that took it to record highs in January. A trader reads a falling price as a reason to wait; a reserve manager reads it as a cheaper entry into a long-term holding. The Council's June survey of reserve managers found 89% expecting global official gold holdings to increase over the following twelve months, with respondents pointing to reserve diversification and geopolitical risk rather than any short-term price view.
Why this matters for UK gold owners
Official-sector buying is one of the reasons the gold price has held at historically elevated levels rather than falling back to where it sat a decade ago. That is context, not a forecast: nobody selling a gold chain in Flintshire is affected by what the National Bank of Poland does in a given quarter, and none of it changes the arithmetic of a valuation, which comes down to the weight and fineness of what you actually have.
What it does explain is why the market has stayed strong enough for household gold to be worth considering at all. A decade of subdued prices would have made most drawer jewellery barely worth the trip.
Sources
- World Gold Council, Gold Demand Trends Q2 2026, published 30 July 2026.
- World Gold Council, Central Bank Gold Reserves Survey 2026, published 16 June 2026.
- Figures are net purchases in tonnes and are subject to revision.
This content is provided for general information only and does not constitute financial or investment advice.
