Central bank gold demand continued to provide a structural floor under gold prices in May, even as macro factors pushed spot prices lower. The People's Bank of China added 3 tonnes to its reserves, bringing its total gold holdings to 2,295 tonnes. China now holds gold at 5.8% of total reserves, up from 3.2% in 2022.
The National Bank of Poland added 8 tonnes in May, making it the largest cumulative buyer in 2026 at 48 tonnes. Poland's stated target is to increase gold to 20% of reserves from the current 14.8%. The Reserve Bank of India added 6 tonnes, continuing its monthly accumulation pattern.
Central bank purchases are increasingly driven by de-dollarization strategies and sanctions risk rather than pure diversification. The BRICS+ bloc now accounts for 38% of global central bank gold buying, up from 22% in 2020. Countries such as Kazakhstan, Uzbekistan, and Qatar also reported small additions.
Central bank buying at 320 tonnes through May indicates institutional conviction. For procurement, this structural demand should temper any bearish outlook. If gold drops toward $4,200 in the coming weeks, treat it as a buying floor, not a signal of further weakness.