Central banks purchased a net 244 tonnes of gold in Q1 2026, representing a 3 percent year-on-year increase from the same period in 2025. This continues a historic multi-year buying spree, with official sector purchases exceeding 1,000 tonnes annually in each of the last three years.
The World Gold Council survey reveals that 43 percent of central banks plan to increase their gold holdings over the next 12 months, while 95 percent expect global official gold reserves to continue rising. This near-consensus view among sovereign buyers provides a powerful demand floor for the gold market.
Central bank buying in 2025 totaled approximately 863 tonnes, still extremely high by historical standards though slightly below the 2024 record. Despite slower monthly purchase pace in early 2026, with 27 tonnes bought in February versus approximately 30-40 tonnes monthly averages in 2025, the trajectory remains firmly positive.
The motivations for sovereign buying include diversification away from USD reserves, geopolitical risk hedging, inflation protection, and reduced appeal of negative-yielding or low-yielding government bonds. Emerging market central banks, particularly in China, India, Turkey, and Poland, have been the most active buyers.