Central Banks Supercharge Gold Buys — 244 Tons in Q1 2026
By John Nada·May 17, 2026·3 min read
Central banks accelerate gold buys, netting 244 tons in Q1 2026, despite record prices. This signals declining confidence in fiat currencies.
Forget bargain hunting. Central banks are gobbling up gold like never before, even as prices soar to the heavens. In the first quarter of 2026, these financial behemoths netted 244 metric tons, the World Gold Council reports.
This marks a 17% increase from Q4 2025 and a 3% rise year-over-year. That’s not just a statistic; it’s the fastest accumulation pace in over a year, happening as gold hit a staggering $5,405 per ounce. One would expect a pullback, yet these institutions keep buying.
Poland, Uzbekistan, and China led the charge. Poland’s National Bank snapped up 31 tons, aiming for a 700-ton reserve. Meanwhile, China added 7 tons, continuing a 17-month buying spree. But sales weren’t absent. Turkey’s central bank sold 70 tons, backed by 80 tons in gold swap deals, while Russia and Azerbaijan each offloaded 22 tons.
The implications of these moves stretch far beyond traditional market shifts. Central banks aren't merely increasing their gold holdings; they're signaling a diminishing faith in fiat currencies. The dollar's purchasing power relative to gold halved from January 2025 to January 2026, a trend mirrored across ten major fiat currencies.
Bar and coin demand tells a similar story. Investors hoarded 474 tons in Q1, a leap of 42% year-over-year. Jewelry demand, on the other hand, tumbled 23%, reflecting a longer-term decline as people flock to more direct forms of gold investment.
Why now? The allure of gold isn't just about its luster; it's about safeguarding against systemic risk. With geopolitical tensions and inflationary pressures simmering, central banks see gold as a fortress. The World Gold Council notes that geopolitical risks remain a significant driver of gold demand, a trend expected to persist throughout 2026 and beyond.
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Unreported purchases add another layer of complexity. The World Gold Council estimates unreported buying by tracking mismatches in global gold supply and demand flows. Some unreported buyers may announce their purchases one or more quarters later, suggesting that the headline figures may understate actual demand.
On the selling side, Turkey, Russia, and Azerbaijan drew the most attention. Turkey's significant offloading through gold swaps served foreign exchange and liquidity purposes, with Governor Fatih Karahan clarifying that most were swap futures, meaning the gold would return to Turkey’s reserves upon maturity.
The structural tailwind provided by central bank purchases exerts upward pressure on gold prices. History shows that following periods of intense buying, gold prices tend to rally within 12 to 18 months, as seen after the 2018 cluster and the late 2022 surge.
The World Gold Council’s outlook suggests that bar and coin demand will remain strong, driven by high prices paradoxically attracting more buyers. The continued demand highlights a shift in how gold is being used as a store of value rather than an ornamental asset, a trend underscored by the sustained decline in jewelry demand.
Central banks' aggressive gold accumulation underscores a lack of confidence in the stability of the global financial system. As they continue their buying spree at record prices, the message is clear: the risks in the financial system are real, and gold is their hedge.