Global Central Bank Gold Purchases Drop to 15-Year Low in Q1
N.R. Finch
After revisions, Q1 2026 central-bank gold purchases collapsed from 244 tonnes to just 57 tonnes — the lowest first-quarter reading in over 15 years; gold has already dropped nearly 30% from its January peak as the buyer that drove four years of record highs steps back.
What exactly changed in the data?
The World Gold Council revised Q1 central-bank purchases from 244 tonnes down to 57 tonnes — a cut of more than 75%.
The reason: gold flows previously classified as "official buyers" were reclassified into "OTC and other." This means → much of the central-bank buying strength the market saw earlier may not have been central banks at all.
For H1 combined, official institutions bought roughly 345 tonnes, the lowest first-half total since 2022.
Why is the data getting harder to track?
WGC strategist John Reade noted that after U.S. sanctions on Russia in 2022, many developing nations accelerated de-dollarization while disclosing less about their gold purchases.
In plain terms = more central banks are buying gold quietly, so public data is becoming less reliable by design.
Reade called it a "cat-and-mouse game" — the WGC adopts new tracking methods, but central banks adjust their buying patterns once they detect monitoring. This reflects a systemic decline in official gold-market transparency.
Who is selling?
Turkey, Russia, and Azerbaijan were all net sellers during the reporting period.
Some Middle Eastern sovereign wealth funds also sold gold, partly to cover revenue shortfalls caused by war-related drops in oil and gas income.
This means → it is not just that fewer buyers showed up — sellers are increasing too, pressuring the gold price from both sides of the ledger.
Can overall demand hold up?
Total global gold demand in H1 was roughly 2,522 tonnes, still up about 2% year-on-year — the central-bank pullback has not yet cratered aggregate demand.
But gold ETFs saw net outflows of about 45 tonnes (roughly $4 billion) in Q2, adding another source of demand-side pressure.
Central-bank buying accounted for roughly one-third of total global gold demand in Q2. Put simply = if the single largest buyer keeps shrinking, the floor under current gold prices weakens — and the market will need a new narrative to justify support at these levels.
Content is for reference only, not financial advice.