Central banks around the world are snapping up record volumes of gold amid the price volatility experienced by the yellow metal over the past couple of months.
The World Gold Council says net purchases reached 289 tonnes in the second quarter of this year, a figure whose monetary value is currently equivalent to approximately $47.38 billion.
Poland led buyers with 51 tonnes while China added 33 tonnes in the second quarter.
Gold purchases during the first half of this year totaled 345 tonnes, with nearly all the increase occurring in the second quarter.
The buying took place while gold prices dropped roughly 14 percent from January highs creating an accumulation window for official institutions.
Western ETF investors reduced holdings during the same period.
The People’s Bank of China continued purchases into July with nearly 20 tonnes added amid the pullback in the price of gold which rose to an all-time high of around $5,500 before pulling back by about 30%.
Central banks have signaled plans to keep buying over the next 12 months, providing support that coincided with a price surge in August.
On the scale of the surge in gold buying by central banks, the World Gold Council says,
“Central banks made significant gold purchases in Q2 (289t). After a notable Q1 slowdown following a downward revision to our data, buying among this cohort recovered sharply to the lofty levels that have been typical in the last four years.”
This was a 411% increase from the first quarter and a 62% rise compared to the second quarter of 2025.
Gold is trading at $4,648 an ounce at time of writing. Wall Street giant J.P.Morgan is forecasting the yellow metal could hit a price of $6,000 by the end of the year, a potential gain of around 29%.
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