As the global gold market continues to debate the demand and price of gold, central banks are also increasing their gold reserves. According to the World Gold Council (WGC), central banks around the world, led by the People’s Bank of China (PBoC), bought about 23 tons of gold in July. Gold accumulation in emerging markets continues. China bought about 20 tons and Poland 8 tons of gold in July.
China’s gold reserves continue to increase:
According to Marisa Salim, senior research head for the APAC region at the World Gold Council, China’s gold buying activity has increased further in the past few months. Since May 2026, the People’s Bank of China has been buying gold in double-digit amounts every month. China has increased its gold reserves for 21 consecutive months. So far this year, China has added about 60 tons of gold. China’s total gold reserves are currently around 2,366 tonnes. This is about 8 per cent of the country’s total foreign reserves. China is the sixth largest gold holder in the world.
Poland leads in gold accumulation:
Poland also continues to buy gold. In July, the National Bank of Poland bought about 8 tonnes of gold. So far this year, Poland has accumulated about 90 tonnes of gold, leading the world in gold purchases. Warsaw is now close to its target of collecting 700 tonnes of gold. The country currently has about 640 tonnes of gold, which is about 28 per cent of its total reserves.
Russia’s opposite policy; selling gold:
Where countries like China and Poland are buying gold to increase their reserves, Russia is selling its gold. Russia sold another 6 tons of gold in July. So far this year, Russia has sold about 50 tons of gold. After this, Moscow’s gold reserves have decreased to about 2,277 tons. Russia’s defense spending has increased due to the war in Ukraine. In addition, sanctions from Western countries have also put pressure on oil and gas revenues. Russia is said to be selling reserves such as gold to meet the fiscal deficit.
Czech Republic’s gold reserves also increased:
The Czech National Bank bought 2 tons of gold in July. This was the 41st consecutive net purchase of gold by the bank. So far this year, the Czech National Bank has bought 12 tons of gold. After this, the share of gold in the country’s total reserves has increased to about 6 percent, or 84 tons.
Kazakhstan, Malaysia and Bolivia also bought gold:
In July, the National Bank of Kazakhstan, Bank Negara Malaysia and the Central Bank of Bolivia each bought 1 tonne of gold. Kazakhstan has accumulated about 29 tonnes of gold so far this year. It is among the top five gold collectors in the world. About 75 percent of Kazakhstan’s total reserves are in gold. On the other hand, Malaysia and Bolivia are relatively new buyers in the gold market. So far this year, Malaysia has accumulated 6 tonnes and Bolivia 2 tonnes of gold.
Why has gold purchases increased since 2024?
Since 2024, various central banks around the world have been emphasizing gold purchases. Gold is seen as a safe haven asset due to factors such as geopolitical instability, inflation and diversification of foreign exchange reserves. The continuous purchase of gold by central banks is said to be one of the main reasons for the increase in gold prices since 2024.
Gold prices see big swings:
Gold prices touched a record high of $5,608 per ounce on January 29. However, gold has lost more than 20 percent of its gains due to inflation concerns after the Iran war, the prospect of a rate hike by the US Federal Reserve and investors turning their attention to energy commodities. On Thursday, gold prices were at $4,444 per ounce. It has fallen about 3 percent since the beginning of the week as the US-Iran conflict intensified again.
While countries like China and Poland are increasing their gold reserves, some countries like Russia and Turkey are selling gold from their reserves. The central bank’s gold policy is being watched amid global economic and geopolitical uncertainties.
