The World Gold Council released its latest "Central Bank Gold Reserves Report" on July 27, 2026, stating that global central banks' net gold purchases reached 286 tonnes in Q2 2026, up 21% year-on-year and surpassing the previous high from Q3 2022. This data shows that the trend of central banks continuously increasing gold reserves is not only continuing but accelerating.
Asian and Middle Eastern countries lead gold purchases
The report shows that the largest gold-purchasing countries in Q2 were concentrated in Asia and the Middle East. The People's Bank of China increased its gold reserves for the eighth consecutive month, purchasing 78 tonnes in the quarter, bringing its total reserves to 2,456 tonnes and raising the share of foreign exchange reserves to 4.5%. The Reserve Bank of India (RBI) followed closely with 62 tonnes of gold purchases, setting a record for the bank's single-quarter purchases. Additionally, central banks of ASEAN countries such as Thailand, the Philippines, and Indonesia also increased holdings by 15 to 30 tonnes each.
In the Middle East, the Qatar Central Bank purchased 25 tonnes of gold, while the Saudi Arabian Monetary Authority (SAMA) added 20 tonnes. Experts analyze that against the backdrop of relatively stable oil prices and ample fiscal surpluses, Middle Eastern countries are actively converting oil revenues into gold reserves to hedge geopolitical risks and reduce dependence on dollar-denominated assets.
Three key drivers behind gold purchases
- De-dollarization strategy: With the continuous rise of US debt and the precedent of Western countries freezing Russia's foreign exchange reserves after the Russia-Ukraine conflict, more and more emerging economy central banks recognize the risks of over-reliance on the US dollar. Gold, as a reserve asset with no sovereign risk, has become the top choice for diversifying reserves.
- Rising safe-haven demand: In the first half of 2026, global economic uncertainty increased — the shadow of the European energy crisis persisted, geopolitical tensions in East Asia intensified, and some emerging market currencies experienced significant volatility, prompting central banks to increase gold holdings to stabilize balance sheets.
- Buying opportunity on gold price correction: After a price correction in the second half of 2025, international gold prices fell to $2,150 per ounce in Q1 2026, attracting central banks to buy at low prices. Gold prices gradually recovered to around $2,350 in Q2, with central bank purchases providing strong support.
Gold price outlook
Commodity analysts at BNP Paribas pointed out that central bank gold purchases have exceeded 250 tonnes for six consecutive quarters, providing a structural demand that underpins gold prices by about 8% annually. If central bank purchases maintain momentum in Q3, gold prices could challenge the $2,500 per ounce level by the end of 2026. However, attention must be paid to the Fed's interest rate policy direction — if inflation rebounds causing the Fed to turn hawkish, it may suppress gold prices in the short term, but central bank buying will continue to act as a stabilizer in the medium to long term.
Yuezi Global Capital Research Institute believes that for Asian investors, central bank actions often lead market sentiment. Currently, many Asian central banks are still strategically increasing holdings. Investors can focus on gold ETFs and related mining stocks to seize both safe-haven and value-added opportunities.
