Central Banks Add Net 22 Tonnes of Gold in June as Buying Trends Shift

The World Gold Council reports that central banks added a net 22 tonnes of gold to their reserves in June. Notably, Uzbekistan ended a four-month streak of selling by purchasing 9 tonnes, reversing a recent trend. Over the second quarter, global central bank gold purchases totaled 166 tonnes, with Poland among the most active buyers, adding 19 tonnes to its reserves.

Quarterly Dynamics: Strong Interest, But A Softer Pace

While the second quarter’s 166 tonnes of purchases demonstrates continued interest in gold as a reserve asset, buying activity was down about 33% compared with the first quarter. That slowdown reflects a partial cooling from the intense buying seen earlier in the year, even as gold prices have risen sharply—nearly 30% year-to-date. The combination of a strong price rally and shifting macro conditions appears to have moderated the pace of acquisitions during Q2.

Why Central Banks Continue to Buy Gold

Central banks typically hold gold as part of a diversified reserves strategy. Gold serves several roles: it is a long-standing store of value, a hedge against inflation and currency volatility, and an asset that is not tied to any single sovereign balance sheet. In times of financial stress or geopolitical uncertainty, gold often performs as a safe-haven asset, prompting reserve managers to increase allocations. The World Gold Council’s data and commentary indicate that these traditional drivers remain influential in decisions by sovereign institutions.

Drivers Behind Recent Purchases

Analysts cite several factors behind ongoing central bank demand. Geopolitical uncertainty continues to be a major consideration, encouraging reserve diversification away from geopolitical and currency concentration risk. Another clear motive is the desire to reduce reliance on the U.S. dollar and broaden the composition of foreign-exchange reserves. These motives can prompt central banks to boost their holdings of physical gold as a non-dollar-denominated alternative.

Country Highlights: Uzbekistan and Poland

Uzbekistan’s 9-tonne acquisition in June reversed a period of selling, marking an important policy shift for that central bank. Such reversals can reflect changes in domestic monetary strategy, external balance considerations, or a reassessment of reserve mix in light of global developments. Poland’s 19 tonnes added during Q2 also underline a deliberate accumulation approach by some European central banks, reflecting longer-term diversification goals.

Market Context: Price Moves and Policy Considerations

Gold’s near 30% gain so far this year has contributed to central bank calculus. Rising prices can both encourage and temper purchases: higher valuations mean acquiring the same tonnage costs more in currency terms, but strong performance can also validate allocations and trigger further accumulation as a protective measure. Monetary policy settings, inflation expectations, and the broader interest-rate environment also influence reserve strategies, as central banks balance returns, liquidity, and risk management objectives.

Outlook: Continued Interest Likely

Industry analysts, including those at ING, anticipate that central banks will continue to add to gold reserves in the months ahead. This expectation rests on persistent geopolitical risks, ongoing concerns about concentration in dollar assets, and the role of gold as a stabilizing reserve asset. While the pace of buying may fluctuate quarter to quarter, the underlying drivers suggest that gold will remain a core instrument for reserve diversification.

Conclusion

June’s modest net increase of 22 tonnes, and the 166 tonnes purchased in Q2, show that central banks remain active participants in the gold market, even as the pace of accumulation cools from earlier in the year. Country-level moves, such as Uzbekistan’s return to buying and Poland’s steady additions, highlight differing national approaches to reserve management. Given the prevailing geopolitical landscape and strategic emphasis on diversification, gold is likely to stay on central banks’ agendas going forward.