Central Banks Bought Record Gold in Q2 as Prices Fell, Then Surged in August

Thu Aug 27 2026

Central banks bought a record 289 tonnes of gold in Q2 2026, up 62% year-on-year and more than five times the revised 57 tonnes purchased in Q1. The buying occurred while gold prices fell about 16% during the quarter, marking the biggest Q2 central-bank gold purchase on record.

The National Bank of Poland was the largest buyer, adding 51 tonnes and taking its reserves to 632 tonnes by the end of June. China added 33 tonnes, its largest quarterly addition since Q4 2023. Uzbekistan added 16 tonnes, Kazakhstan 15 tonnes, while Jordan and the Czech Republic each added six tonnes.

The World Gold Council attributed the strong demand to geopolitical uncertainty, softer gold prices and continued reserve diversification. The article also highlights a broader move by some central banks to reduce dependence on US-dollar assets.

Gold subsequently surged in August, moving toward $4,700/oz, supported by a weaker dollar and concerns over US debt. Gold reached a three-month high near $4,700 before slipping to around $4,598.20/oz on August 27 following a hotter PCE inflation reading.

J.P. Morgan continues to see upside, forecasting gold to average $6,000/oz in Q4 2026, although it reduced its full-year average forecast to $5,243/oz from $5,708/oz.

Key gold-market takeaway: Record central-bank buying during a major price decline indicates that official-sector demand remains a significant structural support for gold.

Source: https://startupfortune.com