Central banks around the world are increasing their gold purchases significantly. In the first quarter of 2026, they acquired a total of 244 tonnes of gold, which is 3% more than the same period last year and well above the five-year quarterly average. Poland was the largest buyer with 31 tonnes, closely followed by Uzbekistan at 25 tonnes. According to recent findings from the World Gold Council, an impressive 45% of central banks plan to expand their gold reserves in the next year.
Historical data shows that central banks were purchasing over 1,000 tonnes of gold a year during the period from 2022 to 2024, but they reduced their purchases to 863 tonnes in 2025. Goldman Sachs projects that the buying trend will continue at about 60 tonnes per month through the rest of 2026, further supporting a year-end price forecast of $5,400 per ounce for gold. Poland's National Bank has been particularly proactive, adding 14 tonnes in April 2026 alone, and aims to increase its total reserves to 700 tonnes. The People's Bank of China has maintained its buying pace, adding 8 tonnes in the same month. Other countries like Kazakhstan and Brazil are also consistently adding gold to their reserves. A survey reveals that 89% of central banks expect their gold holdings to grow over the next year.
Another crucial factor emerging is how central banks are storing their gold. In the last year, 9% increased their domestic gold storage, up from 5% previously, and 10% diversified their overseas storage locations, a stark rise from just 2%. The Bank of England continues to be the top choice for overseas vaults, utilized by 57% of central banks.
An interesting player in the gold market is Tether, known primarily for its stablecoin, USDT. With gold holdings estimated between 116 and 148 tonnes through its Tether Gold (XAUt) token, it rivals the reserves of smaller central banks. As of early 2026, the total value of central bank gold holdings reached approximately $4 trillion.
What does all this mean for investors? Goldman Sachs’ anticipated price of $5,400 per ounce suggests a strong institutional demand for gold and no immediate slowdown. While central bank purchases fell in 2025, the trend in Q1 2026 points to potential growth in total purchases this year. If the first quarter's pace continues, it could lead to an estimated total of 976 tonnes for the year. Additionally, the shifting storage methods indicate a movement away from traditional hubs, which could impact gold lending markets and the broader trading framework for gold.