Central banks continued to accumulate gold in July, reinforcing one of the most persistent structural themes in global bullion markets. According to the World Gold Council, reported official-sector net purchases reached 23 tonnes during the month, as reserve managers continued to diversify amid geopolitical uncertainty, financial-market fragmentation and changing views on the composition of foreign-exchange reserves.

China and Poland Drive July’s Official-Sector Demand

The July figures were led by China, whose central bank added 20 tonnes of gold, followed by Poland with 8 tonnes. The People’s Bank of China has now reported gold purchases for 21 consecutive months, while July’s addition was its largest monthly purchase since late 2023. China’s official gold holdings reached approximately 2,366 tonnes, equivalent to around 8% of its foreign-exchange reserves.

Poland has also emerged as one of the most consistent buyers. The National Bank of Poland added another 8 tonnes in July, taking its reported purchases for 2026 to 90 tonnes. Its gold reserves reached approximately 640 tonnes, compared with the country’s stated target of 700 tonnes. Gold now represents roughly 28% of Poland’s total reserves, according to the World Gold Council.

Russia was the largest reported seller in July, reducing its holdings by 6 tonnes, while Turkey, Jordan and Uzbekistan each recorded smaller sales of approximately 1 tonne. This illustrates that central-bank demand remains broad but uneven, with individual reserve managers responding differently to liquidity requirements, gold prices and domestic financial conditions.

July Buying Extends a Broader Reserve-Diversification Trend

The latest monthly data follows a sharp rebound in official-sector demand during the second quarter. The World Gold Council estimates that central banks and other official institutions recorded 289 tonnes of net purchases in Q2, more than five times its revised Q1 estimate of 57 tonnes. First-half demand reached 345 tonnes, although that figure remained the lowest first-half total since 2022 because of substantial selling earlier in the year.

The longer-term direction remains significant. In the World Gold Council’s 2026 Central Bank Gold Reserves Survey, 89% of reserve managers expected global central-bank gold holdings to increase over the following 12 months, while a record 45% expected their own institutions to increase gold holdings. The survey points to reserve diversification and protection against geopolitical and financial uncertainty as important reasons for maintaining gold allocations.

This demand is particularly relevant because central banks typically operate with longer time horizons than private investors. Official-sector purchases therefore represent a potentially more persistent source of demand, even when short-term gold prices experience periods of consolidation or volatility.

Bank of Korea Adds a Different Dimension to Gold Demand

The Bank of Korea provided another notable signal in August by disclosing that it held 679,765 shares of SPDR Gold Trust, valued at approximately $250.4 million at the end of June. The position was absent from its first-quarter filing and represented the central bank’s first gold-linked investment in 13 years.

The distinction between ETF exposure and physical bullion is important. The BOK’s GLD position is classified as a foreign security within its reserves and does not increase its reported physical gold holdings. The central bank separately holds approximately 104.4 tonnes of physical gold and has announced plans to establish a framework for purchasing domestically produced gold intended for export.

The combination of physical accumulation by countries such as China and Poland and financial-market exposure through instruments such as gold ETFs suggests that reserve diversification is taking several forms. For global markets, the development matters because sustained official-sector demand can influence the balance between available bullion supply and investment demand.

Looking ahead, the key indicators will be monthly central-bank purchases, China’s continued accumulation, Poland’s progress toward its reserve target and additional diversification decisions by other reserve managers. The World Gold Council expects central-bank demand to remain above its long-term average, while investment demand is also expected to support the gold market through the remainder of 2026.  The combination of official-sector buying, geopolitical uncertainty and investor allocations will remain important variables for gold prices, although the pace of purchases may vary as reserve managers respond to valuation, liquidity and macroeconomic conditions.