Central banks kept accumulating gold in July, adding a net 23 tonnes to their collective reserves. The steady accumulation extends a buying trend that took off after 2022, when the freezing of Russia's foreign exchange reserves prompted many central banks to view gold as a hedge against sanctions risk and concentration in dollar-denominated assets.

Year to date, central banks have purchased an additional 130 tonnes of gold, roughly 30 tonnes less than over the same period last year. The main difference between 2025 and 2026 has been a higher level of selling this year. Because monthly figures are drawn from IMF data and central bank disclosures, reported totals also tend to understate true demand to the extent that some buyers do not fully disclose their purchases.

The Gold Buyers

The People's Bank of China was the largest buyer in July, raising its official reserves by 20 tonnes. It marked the 22nd consecutive month of reported gold purchases, bringing official Chinese reserves to 2,366 tonnes, about 8 percent of the country's total reserves. So far this year, the PBoC has added 60 tonnes to its officially reported gold holdings.

Note the emphasis on "official." China is among the central banks likely holding significantly more gold than they publicly disclose. As Jan Nieuwenhuijs has reported, the People's Bank of China has been secretly buying large amounts of gold off the books. According to data parsed by the Money Metals researcher, the Chinese central bank currently holds more than 5,000 tonnes of monetary gold located in Beijing — more than twice the publicly admitted amount. For comparison, the United States holds the world's largest official gold reserves at roughly 8,133 tonnes, a figure unchanged for decades.

Mainstream observers have begun to take note. Last month, Goldman Sachs picked up on China's undisclosed purchases, and analysts at BMO Capital estimated that Chinese gold reserves could surpass those of the United States within five years.

Poland ranks as the top gold buyer so far this year after adding another 8 tonnes in July. In 2026 to date, the National Bank of Poland has increased its gold reserves by 90 tonnes, bringing holdings to 640 tonnes, roughly 28 percent of its total reserves. Poland led central bank gold buying in 2025, adding 102 tonnes. Poland's buying is part of a broader pattern among central and Eastern European banks that have publicly framed gold accumulation as a matter of financial security and reserve diversification.

Late last year, the National Bank of Poland issued a statement saying it plans to purchase up to 150 additional tonnes of gold, raising holdings to a maximum of 700 tonnes. NBP Governor Adam Glapiński said the increase would elevate Poland to "elite" status: "This will place Poland among the elite 10 countries with the largest gold reserves in the world."

The Polish central bank already holds more gold than the European Central Bank. For context, the NBP held just 14 tonnes of gold in 1996.

The Czech Republic has been one of the most consistent gold buyers in recent years, and the pattern continued in July with another 2-tonne purchase. The Czechs have taken a slow, steady approach, buying gold for 41 consecutive months. The country added 20 tonnes last year and now holds 84 tonnes. Czech officials say they plan to raise gold reserves to 100 tonnes by 2028.

Other central bank buyers last month were:

• Kazakhstan – 1 tonne
• Malaysia – 1 tonne
• Bolivia – 1 tonne

The Gold Sellers

Russia continued to draw on its gold reserves as it copes with economic sanctions and a wartime economy. The Central Bank of Russia reported a further 6-tonne decline in July. Year to date, Russia has sold 50 tonnes of gold, reducing official reserves to 2,277 tonnes.

Turkey's gold holdings slipped by another tonne in July. The Central Bank of the Republic of Turkey has sold 85 tonnes of gold so far this year as it manages a weak currency and the pressure of rising oil prices. Turkey sold a large amount of gold earlier this year to backstop the lira.

Uzbekistan flipped to selling in July, modestly cutting reserves by 1 tonne after adding 9 tonnes in both May and June. The Uzbek central bank has increased reserves by a net 40 tonnes year to date. It is not unusual for central banks that buy from domestic sources, such as Uzbekistan and Kazakhstan, to move back and forth between buying and selling.

According to the World Gold Council, Central Bank of Uzbekistan Governor Timur Ishmetov recently said that while "gold has turned out to be the best investment so far," the central bank is considering potential gold sales at "favorable prices" as part of its overall reserve management plan. Uzbekistan holds roughly 87 percent of its reserves in gold.

Jordan was also a seller in July, reducing reserves by 1 tonne.

The Big Picture

Central bank gold buying moderated in 2025 but remained far above the recent historical average. Official net full-year buying came in at 863.3 tonnes, down 21 percent year-on-year and the lowest level since 2021. Even so, purchases remained well above the 2010–2021 annual average of 473 tonnes, making last year the fourth-largest expansion of central bank gold reserves on record. The all-time high was set in 2022 at 1,136 tonnes — the highest level of net purchases on record dating back to 1950, including the period since the suspension of dollar convertibility into gold in 1971. Before the recent surge, central banks were on average net sellers of gold for decades after the end of the Bretton Woods system.

The surging gold price was likely a factor in the slower central bank accumulation. As the World Gold Council put it, the higher price prompted "a more cautious approach."

"This highlights that central banks are not insensitive to price dynamics, even as their long-term strategic interest in gold remains firmly intact."

In the latest World Gold Council survey, central bankers overwhelmingly said they expect global gold reserves to continue growing over the next 12 months. With prices moderating, several central banks appear to be taking advantage of the recent correction to accumulate gold more quickly.

Source: GoldSeek — Mike Maharrey