EM Central Banks Accelerate Gold Reserve Accumulation as De-Dollarization Deepens

EM central banks purchased a record 108 tonnes of gold in Q1 2026, according to the WGC, accelerating the structural de-dollarization trend. China, India, and Poland led the buying, with China's PBOC adding 7 tonnes - more than double its Q4 2025 pace.

The buying reflects a strategic shift away from USD reserves driven by sanctions risk, US fiscal deficits, and dollar weaponization. China's plan to serve as custodian for foreign sovereign gold reserves could spur new buying from EMs seeking protection. EM gold reserves remain well below developed-country levels.

Central bank purchases at ~800t/yr absorb a significant portion of annual mine production (3,600t). Unlike speculative flows, central bank buying is strategic and price-insensitive within a range. VanEck expects central banks to remain net buyers through 2030.