Amid geopolitical tensions, shifting interest rate cycles, sanctions risk, and elevated global debt, one structural trend continues into 2026: central banks are still buying gold.

After record-breaking accumulation in 2022 and 2023, official sector demand has moderated — but it has not reversed. According to the World Gold Council (WGC), central banks purchased 1,082 tonnes in 2022 and 1,037 tonnes in 2023 — the two highest annual totals on record. In 2024, purchases remained elevated at 1,045 tonnes, more than double the pre-2022 decade average of roughly 400–500 tonnes annually.
Source: World Gold Council, Gold Demand Trends. Source

Preliminary 2025 data shows central banks remained net buyers, albeit at slightly lower levels. Monthly data confirms the trend has extended into late 2025 and early 2026. In November 2025 alone, official reserves increased by 45 tonnes, with the National Bank of Poland among the largest contributors. Source

Meanwhile, Reuters reports that China extended its gold-buying streak into early 2026, marking more than 15 consecutive months of additions and lifting total holdings above 2,300 tonnes.

Emerging markets continue to lead accumulation. Poland has publicly targeted raising gold toward 20% of total reserves, framing the move as long-term policy rather than tactical positioning. Kazakhstan and Brazil have also added meaningfully. Not every central bank is accelerating — India slowed purchases in 2025 — but globally, the official sector remains net positive.

Why Are Central Banks Still Accumulating Gold?

1. Diversification Away from Currency Risk

   Gold carries no issuer risk. It is not tied to a single country’s fiscal discipline or monetary policy. In an environment shaped by reserve freezes, sanctions, and currency volatility, gold’s neutrality has regained importance. The WGC’s 2024 Central Bank Gold Reserves Survey found that a record share of central banks expect global gold reserves to increase over the next 12 months — the highest optimism level in the survey’s eight-year history.

   For reserve managers, gold is not a growth asset. It is monetary insurance.

2. High Debt and Fragile Real Yields

   
   Sovereign debt levels remain elevated across developed economies. Rate-cut expectations remain fluid. Real yields remain sensitive to inflation dynamics. In such an environment, gold serves as a hedge against policy uncertainty and long-term currency dilution.

   Forecasts from multiple institutional research houses suggest central bank demand may remain structurally strong through 2026, even if volumes normalize from peak years.

3. Structural Rebalancing, Not Crisis

    

   This trend does not signal imminent economic collapse. Central banks operate on multi-year frameworks. Their reserve allocations adjust gradually, not reactively.

   Elevated gold buying reflects deliberate portfolio rebalancing — not panic.

What Does This Mean for Investors in 2026?

Central bank behavior provides context, not a timing signal.

Gold is not designed to outperform equities during expansionary cycles, nor does it generate yield like bonds. Its historical role — for sovereign institutions and diversified portfolios alike — has been resilience during monetary transition and systemic stress.

The data through early 2026 reinforces three themes:

• Central banks remain net buyers of gold
• Emerging markets are leading accumulation
• Diversification and resilience — not speculation — are the primary drivers

For investors, gold continues to function as a long-term stabilizer rather than a short-term trade.

Access today spans physical bars and coins, allocated vehicles, ETFs, futures, and regulated accounts. Digital gold platforms also provide custody-backed exposure, though due diligence on liquidity, fees, and underlying allocation remains essential. For investors exploring gold in UAE markets, local spreads, liquidity depth, and regulatory clarity matter alongside global pricing.

Silver is sometimes considered within a broader precious metals allocation, particularly for investors seeking exposure to both defensive and industrial demand dynamics.

Our View

At Sav, we see central bank gold accumulation as structural — not cyclical.

When sovereign institutions allocate consistently across years and across regimes, it signals enduring relevance. Gold’s continued role in official reserves underscores its place as a long-term diversifier in an evolving monetary system.

It is not about predicting price spikes but understanding allocation.

In uncertain cycles, resilience often matters more than returns.

Understanding that distinction helps move beyond headlines — and toward disciplined portfolio structure.