Central banks significantly increased their gold purchases in May, highlighting continued demand for the precious metal despite elevated prices and ongoing volatility across global financial markets.
According to the World Gold Council, central banks purchased a net 41 metric tons of gold during the month, more than doubling April’s net purchases of 19 tons. The rebound suggests that official institutions remain committed to expanding their gold reserves as part of broader reserve diversification strategies.
The renewed buying comes after several years of historically strong central bank demand, which has become one of the key structural drivers supporting the global gold market.
Poland and China Lead Global Buying
Poland was the world’s largest gold buyer in May, adding 18 tons to its reserves. That brought the country’s total purchases for 2026 to 64 tons, lifting its official gold holdings to 614 tons.
China ranked second, purchasing 10 tons during the month. The increase marked the country’s largest monthly acquisition since December 2024 and extended its buying streak to 20 consecutive months. China’s official gold reserves now stand at 2,331 tons.
Meanwhile, Turkey was the only major central bank to reduce its holdings, selling 3 tons during May. Total net sales by Turkey have reached 81 tons so far this year as authorities continue using part of the country’s gold reserves to support the Turkish lira.
The divergence highlights how central bank activity can vary depending on domestic economic conditions, with some countries accumulating reserves while others deploy them to stabilize financial markets.
Gold Remains a Strategic Reserve Asset
The World Gold Council’s latest survey suggests central banks remain overwhelmingly positive on gold’s long-term role in reserve management.
According to the survey, 89% of central banks expect global official gold holdings to increase over the next 12 months, while a record 45% said they plan to expand their own reserves.
The findings reinforce a multi-year trend in which central banks have steadily reduced reliance on traditional reserve assets while increasing allocations to gold.
Although gold gained roughly 2% over the past week after four consecutive weeks of declines, prices remain well below recent highs.
The broader takeaway is that central banks continue to view gold as a strategic reserve asset despite short-term price fluctuations. Strong purchases from countries such as Poland and China suggest official demand remains an important pillar supporting the long-term outlook for the precious metal.
