Central banks buy 39 tonnes of gold in August versus 23 tonnes in July

Key Facts

Reported net gold purchases by central banks totalled 39 tonnes in August 2026, according to the World Gold Council, as the official sector continued to accumulate the metal. Monthly purchases exceeded July's level, when the council recorded reported net buying of 23 tonnes, reflecting an acceleration in monthly additions. Total reported purchases from the start of the year through the end of August reached 170 tonnes, according to the council, extending buying activity through the summer months. These additions follow an increase in net central bank gold demand to about 289 tonnes in the second quarter, according to the council's demand estimates. The council's revised estimate for net demand in the first quarter was 57 tonnes, before demand rebounded in the following quarter.

In China, the People's Bank of China announced an addition of 20.2 tonnes to its gold reserves in August, according to the World Gold Council's China market update. This extended the bank's run of increases in its holdings to 22 consecutive months through the end of August, as it continued to build its stock of the metal. China's total gold reserves reached 2,387 tonnes at the end of the month, reflecting purchases accumulated over that period. Alongside the increase in volumes, gold's share of China's total reserves rose to 9% in August, according to figures cited by the council. That share stood at 8% in July, placing China's latest addition in the context of the metal's growing weight within reserves, alongside the increase in the holdings themselves.

In terms of reported cumulative purchases, Poland led central banks with buying of 98 tonnes from the start of the year through August, according to the World Gold Council. Its gold holdings reached 648 tonnes at the end of August, as it continued to accumulate the metal in its reserves during the year. Poland is targeting holdings of 700 tonnes, a goal the council said it was approaching with its additions. In the opposite direction, the Central Bank of Jordan sold 3 tonnes of gold in August, according to the same monthly report, amid continued net buying globally. Jordan's sales came in the month when China continued to increase its reserves and Poland remained the leading reported buyer since the start of the year, reflecting differing changes in holdings among central banks.

Goldman Sachs links central banks' continued accumulation of gold to efforts to diversify their reserves as a hedge against geopolitical and financial risks, according to its analysis published in August. The bank said central banks were seeking to "diversify their reserves to hedge against geopolitical and financial risks", placing reserve risk management at the centre of its explanation for continued buying. In the analysis, it forecast that their purchases would average 50 tonnes a month during 2026, an estimate of the pace of official demand over the year. The bank compared this pace with a historical average of 17 tonnes a month before 2022, placing its forecasts on a buying trajectory above levels preceding that period. Goldman also addressed the metal's price outlook, forecasting gold would reach $4,900 an ounce by the end of 2026, as part of its outlook published in August.

Against this backdrop, a World Gold Council survey released in June 2026 showed that 89% of reserve managers expected global central bank gold holdings to continue rising. Their expectations covered the 12 months following the survey, the horizon over which managers were asked about the direction of global holdings. These expectations concern the total holdings of central banks worldwide, while actual reserve movements encompass banks adding to their holdings and others selling part of them. The majority of respondents' expectation of rising holdings sits alongside Goldman's explanation of buying as a means of diversifying reserves and hedging against risks. This places official demand in the context of central bank reserve management, whether through China's continued additions or Poland's programme to increase its holdings towards its stated target.

In the market, gold fell 0.67% during the week preceding an analysis published by Investing.com on 19 October 2026, according to the analysis's account of the metal's weekly performance. The decline came against a market backdrop combining continued official-sector purchases and expectations for the path of gold prices over the remainder of the year. Goldman's price forecasts remain tied to its analysis published in August, which addressed continued central bank buying alongside reserve diversification. On the upcoming monetary policy calendar, the Federal Reserve holds its meeting on 27–28 October 2026, according to its official calendar. The Federal Open Market Committee meeting comes after the publication of official purchase figures for August and before the year-end horizon Goldman set for its gold price forecast.