Asian Central Banks' Gold Reserves Hit New High: Q2 2026 Purchases Exceed 200 Tonnes
On July 29, 2026, the latest data jointly released by the International Monetary Fund (IMF) and the World Gold Council showed that net gold purchases by major Asian central banks in Q2 2026 reached an astonishing 215 tonnes, not only nearly 20% higher than the 180 tonnes in Q1 but also marking the highest quarterly record since 2019. This accumulation accounted for nearly 60% of global central bank gold purchases, highlighting the dominant role of Asian countries in the global gold market.
Details of Central Bank Purchases: China, India, Singapore Lead
By country, the People's Bank of China continued as the largest buyer. Data shows the PBOC added 80 tonnes of gold in Q2, raising its official gold reserves to 2,450 tonnes and its share of foreign exchange reserves to 5.2%. Since resuming purchases in 2024, China has net bought for eight consecutive quarters, accumulating over 400 tonnes. Analysts point out that amid rising geopolitical risks and the need for RMB internationalization, the PBOC optimizes its reserve structure by increasing gold holdings and reducing reliance on dollar assets.
The Reserve Bank of India followed closely, adding 60 tonnes in Q2, bringing total reserves to a record 900 tonnes. Since 2023, the RBI has maintained a steady monthly buying pace, with gold's share rising from 7% in 2022 to 11% now. The RBI governor stated that increasing gold holdings is to cope with global economic uncertainty and high inflation, while also enhancing rupee exchange rate stability.
The Monetary Authority of Singapore (MAS) added 40 tonnes of gold in Q2, pushing its gold reserves to around 200 tonnes. MAS earlier revealed that gold, as a sovereign risk-free asset, helps diversify its foreign exchange reserves of up to $400 billion. Additionally, the Bank of Thailand and Bank Indonesia added 15 tonnes and 10 tonnes respectively, while Bank Negara Malaysia slightly reduced by 5 tonnes.
Drivers: De-dollarization Wave and Safe-Haven Sentiment Converge
The World Gold Council's chief market strategist said in an interview that the current central bank buying spree in Asia is mainly driven by two factors. First, emerging economies led by China and India are accelerating the 'de-dollarization' strategy. With US Treasury yield volatility and damage to dollar credit, central banks view gold as a more reliable store of value. Second, ongoing global geopolitical tensions—including the Taiwan Strait situation, Korean Peninsula issues, and spillover from Middle East conflicts—prompt central banks to increase gold as a safe-haven asset.
Notably, Western central banks (e.g., Federal Reserve, ECB) kept gold reserves largely unchanged in Q2, showing a significant divergence in gold policies between East and West. Asian central banks' active purchases are reshaping global gold supply-demand dynamics.
Impact on Gold Market: Gold Price Finds Solid Support
Driven by sustained large-scale central bank purchases, international gold prices remained high and volatile in Q2, with spot gold averaging around $2,350 per ounce, up 18% year-on-year. Despite the Fed maintaining high interest rates in H1 2026, central bank buying effectively offset some pressure from declining investment demand.
Looking ahead to H2, market analysts expect Asian central banks to remain net buyers, especially China and India have significant room for further accumulation. If global recession risks escalate, gold prices may break the $2,500 mark. In terms of investment advice, precious metals analysts note that central bank purchases provide strong floor support for gold; long-term investors can continue allocating to gold assets; in the short term, focus on US employment data and Fed policy pivot points.
Overall, the continued growth of Asian central bank gold reserves not only reflects gold's resurgence in the international monetary system but also provides an important market barometer for global investors. As Asian economies increase their weight in the global financial landscape, central bank gold demand is expected to become the core engine driving gold price increases in the next decade.
