After weak performance in the first quarter, institutional investors increased their gold purchases in the second quarter, reaching a record level for the period.
The World Gold Council (WGC) found that demand from central banks sharply recovered in the second quarter of 2026, with net purchases reaching 288.9 tons, which is 62% higher than the figure for the same period in 2025 (177.9 tons).
This also indicates a sharp increase compared to the revised data for the first quarter, when net accumulation fell to 57 tons. This recovery was driven by two main factors: increased purchases by the National Bank of Poland and the People's Bank of China, as well as reduced sales by Turkey and Russia.
Nevertheless, the overall gold demand from central banks fell to its lowest level since 2022, totaling only 345 tons due to significant sales by Turkey, Russia, and Azerbaijan.
The largest buyer in the second quarter, as expected, was the National Bank of Poland, which has set a goal of increasing national reserves to 700 tons. The bank purchased 51 tons, which, together with the 31 tons purchased in the first quarter, amounts to 82 tons acquired by this institution in the first half of the year.
The People's Bank of China also showed increased interest in gold, making its largest purchases since the fourth quarter of 2023, raising its officially declared reserves to 2,346 tons. However, a number of reports indicate that China is secretly accumulating gold through imports via London, which are not declared, as the country shifts from dollars to gold. This aligns with the findings of the WGC, which determined that the volume of undeclared gold purchases has been elevated.
Uzbekistan (16 tons), Kazakhstan (15 tons), the Central Bank of Jordan (6 tons), and the Czech Republic (6 tons) also contributed to the record demand in the second quarter.
In contrast, the Bank of Russia recorded the largest volume of gold sales in the second quarter—22 tons—as, according to reports, it seeks to cover the federal budget deficit. Turkey, which was the largest seller in the first quarter, slowed its pace of selling, disposing of 4 tons in this period.
According to the results of the WGC's own "Central Bank Gold Reserves" survey, gold purchases are expected to continue gaining momentum by the end of this year: 89% of central bank representatives forecast an increase in gold reserves over the next 12 months.
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