Global central banks purchased a combined 290 tonnes of gold in the first quarter of 2026, the highest quarterly acquisition since 2023, according to data compiled by the World Gold Council. The buying reflects a sustained strategic shift by monetary authorities toward gold as a core reserve asset.
Who Is Buying the Most?
China's People's Bank of China led official sector purchases, adding approximately 72 tonnes in the quarter. India's RBI added 18 tonnes, bringing its total reserves to 876 tonnes. Turkey added 23 tonnes, continuing its multi-year accumulation programme. Poland, which has been one of the most aggressive gold buyers among European central banks, added 14 tonnes in the quarter.
Why Are Central Banks Buying So Much Gold?
The surge in central bank buying reflects several overlapping motivations. The weaponisation of the US dollar through financial sanctions following the Russia-Ukraine conflict demonstrated that dollar-denominated reserves can be frozen by adversaries. Gold, held in domestic vaults, cannot be subjected to this risk. Additionally, concerns about the long-term fiscal trajectory of the United States and the potential for dollar debasement have led reserve managers to diversify.
Price Implications
With central banks absorbing approximately 20–25% of annual mine supply through their buying programmes, the structural demand floor for gold has risen considerably. Analysts note that even if retail investment and jewellery demand were to soften, central bank buying alone is sufficient to keep prices supported. This is a meaningful change from earlier gold cycles where institutional support was less consistent.