Central Banks Resume Gold Purchases to Bolster Reserves and Diversify Portfolios

Key Facts

Amid rising geopolitical uncertainty, gold has re-emerged as a pivotal tool in global sovereign hedging strategies. According to reports from ING, global central banks have resumed gold purchases to bolster their official reserves. This move follows a period of significant diversification away from traditional assets such as U.S. debt, as monetary institutions seek to protect their portfolios from sovereign debt risks and geopolitical volatility.

This trend reflects the sustained robust demand witnessed in 2023, when annual central bank purchases reached historic levels near 1,037 tonnes according to World Gold Council data. Compared to other assets, gold remains the preferred haven at a time when market data shows pressure on sovereign bonds, while the U.S. Super Core PCE index stood at 3.483% annually as of May 28, 2026, reinforcing gold's appeal as a long-term inflation hedge.

Technically, traders are monitoring support and resistance levels for the yellow metal in light of these continuous institutional inflows. Looking at the economic calendar, investors are awaiting speeches from Fed officials, including Kashkari on May 29, 2026, for signals on the interest rate path which directly impacts the opportunity cost of holding gold. Central bank buying momentum will remain a fundamental factor in supporting prices at current levels.