Central Banks Buy 39 Tonnes of Gold in August as China Keeps Adding
Key Facts
Reported net gold purchases by central banks totalled 39 tonnes in August 2026, according to an update published by the World Gold Council in October, as official institutions continued to increase their holdings of the metal within their reserves. Total reported purchases from the start of the year through the end of August reached 170 tonnes, the council said, covering reported official buying during that period. The People's Bank of China added 20 tonnes to its reserves in August, placing it among the buyers tracked in the council's monthly update. Poland led reported purchases from the start of the year through August, buying a total of 98 tonnes of gold. Buyers in August also included Uzbekistan, Kazakhstan, the Czech Republic and Turkey, while the Central Bank of Jordan recorded sales of the metal.
Uzbekistan's central bank bought 8 tonnes of gold in August, according to details of official activity included in the World Gold Council's update. The National Bank of Kazakhstan recorded purchases of 7 tonnes during the same month, compared with purchases of 2 tonnes by the Czech National Bank. Turkey's central bank returned to buying, adding 3 tonnes of gold after months marked by net selling, the council said. On the other side of official transactions, the Central Bank of Jordan sold 3 tonnes in August, taking a different direction from the buying banks mentioned. Jordan's sales thus matched Turkey's addition during the month, while purchases by both Uzbekistan and Kazakhstan exceeded those of Turkey's central bank.
In a more recent update published on 15 October, the World Gold Council said China added 23 tonnes to its reserves in September, compared with an addition of 20 tonnes in August. The council described September's purchase as the largest since October 2023, bringing total Chinese purchases in the third quarter to 63 tonnes. Globally, net central bank demand totalled about 345 tonnes in the first half of 2026, according to the council's Gold Demand Trends report. That was the lowest first-half demand since 2022, according to the historical comparison included in the council's report. The council also said unreported buying by central banks and other official institutions remained elevated during the second quarter.
Goldman Sachs links central banks' diversification of their reserves into gold to hedging against geopolitical and financial risks, in its explanation of the reasons for holding the metal among official assets. In its 2026 central bank reserves survey, the World Gold Council said 90% of respondents cited gold's performance during crises among their reasons for holding it. The council expressed this motivation by saying respondents cited "gold's performance during times of crisis" when outlining their reasons for choosing the metal for reserves. Reserve management also includes storage arrangements, with the council noting that the redistribution of Dutch gold aimed to improve the liquidity and tradability of reserves. It cautioned against treating recent transfers between storage locations, in themselves, as evidence that central banks were preparing to sell gold.
Alongside official purchases, global gold exchange-traded funds attracted inflows of $10 billion in September, according to World Gold Council data on funds backed by the metal. Third-quarter inflows reached a record $31 billion, a quarterly total that includes the inflows recorded in September. In terms of the amount of gold held by the funds, global holdings rose by 67 tonnes during the month, according to the council's data. Total holdings reached a record 4,256 tonnes at the end of September, coinciding with financial inflows into the funds. The records for holdings and quarterly inflows came during the period in which China increased its official purchases to 63 tonnes in the third quarter.
Over a longer horizon, 74% of respondents to the World Gold Council's 2026 survey expected the dollar's share of global reserves to decline within five years. As for monetary policy's effect on the metal's appeal, Goldman Sachs said higher interest rates reduce gold's attractiveness relative to yield-bearing assets. The bank cited bonds as an example of such assets in its comparison between holding gold and investing in income-producing instruments as interest rates rise. The U.S. Federal Reserve holds its next meeting on 27 and 28 October 2026, according to the official calendar published on the central bank's website. The Federal Open Market Committee meeting runs for two days and is followed by a press conference, according to the same calendar.