Official Sector Gold Demand Recovery
- Net central bank gold purchases rebounded strongly in Q2 2026, returning to the average levels seen over 2022–2025 after a sharp drop during the early stages of the Iranian conflict (p. 1).
- Reserve diversification remains a primary driver for central banks amid escalating geopolitical tensions, concerns over unilateral US foreign policy, and expansionary US fiscal policy (p. 3).
- Confidence in the US dollar and US Treasuries has declined, with foreign official holdings of US Treasuries falling 3% from the start of the year to $3.8tn by end-June 2026 (p. 3).
Key Central Bank Buyers and Sellers
- The People's Bank of China accelerated its gold purchases starting in March, reporting a 25t increase in August, while reducing its US Treasuries holdings to $633bn by end-June (p. 1).
- Poland added 90t of gold by end-July, keeping the country on track to match its elevated purchasing levels from 2023–2025 (p. 1).
- Singapore reported a 10t increase in gold reserves over May–June, representing its first meaningful rise since 2024 (p. 3).
- Turkey's gold sales subsided after April, leaving Russia as the only major seller; Russia sold 6–9t of gold monthly through July to help finance its federal budget deficit and wartime economy (p. 3, p. 5).
Reassessment of Gold Storage Strategies
- Geopolitical risks and concerns over the accessibility of overseas holdings—highlighted by extended withdrawal times from the Bank of England in early 2025—prompted several nations to relocate their gold (p. 5).
- France and India relocated gold from the US and UK in 2025, while the Netherlands recently moved 86t of gold from the US and Canada to London (p. 5).
- Foreign official gold holdings at the US Federal Reserve declined due to these withdrawals but remained substantial at 5,755t at end-July (p. 5).
Precious Metals Market Briefs
- Gold consolidated near $4,400 as investors awaited upcoming US inflation data (p. 1).
- The gold-to-silver ratio briefly fell below 65, reaching its lowest level since late June (p. 1).
- Sibanye-Stillwater entered a Section 189A consultation to restructure its Kwezi Shaft following a decision to delay its life-extension project (p. 1).
- The US extended its 50% Section 338 tariffs to selected Canadian vehicle and auto-part categories starting September 15th (p. 1).

Official sector gold demand recovers as diversification drivers persist

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