Central Banks Net Buyers of 41 Tonnes in May Despite Gold's Quarterly Slump
Central banks bought a net 41 tonnes of gold in May 2026, led by Poland and China, even as the metal posted its worst quarterly performance since Q2 2013. World Gold Council survey data shows 89% of central bank respondents expect global reserves to rise over the next year.
World Gold Council data released for May 2026 shows central banks purchased a net 41 tonnes of gold during the month, even as the metal recorded its fourth consecutive monthly decline in June and its worst quarterly performance since Q2 2013.
Gold dropped to $3,942 on June 30, its lowest level since early November 2025. The metal fell 11.7% in June following a 1.8% decline in May, bringing total losses for the quarter ending June 30 to approximately 16%. Expectations of Federal Reserve rate hikes and uncertainty in the Middle East were cited as primary drivers of the selloff.
Major financial institutions have revised their price targets downward in response. Goldman Sachs lowered its year-end forecast to $4,900 per ounce. Deutsche Bank cut its third-quarter target to $4,300 and warned that prices could fall to $3,800 if the Fed executes three to four rate hikes.
On the demand side, the National Bank of Poland was the largest single buyer in May, adding 18 tonnes — its fourth consecutive month of double-digit purchases. Poland has accumulated 64 tonnes year-to-date, bringing total reserves to 614 tonnes.
The People's Bank of China added 10 tonnes in May, marking its 20th straight monthly purchase and its largest single addition since December 2024. China's gold reserves now stand at approximately 2,331 tonnes.
The Monetary Authority of Singapore returned to the buyer's side with a 4-tonne purchase, its first acquisition since September 2025. Singapore also announced plans to launch central bank gold vaulting services in October 2026.
Uzbekistan and Kazakhstan added 9 tonnes and 7 tonnes, respectively, during the same period. Turkey and Russia remained net sellers in May.
Broader institutional sentiment remains constructive. In the WGC's 2026 central bank survey, 89% of respondents said they expect global gold reserves to increase over the next 12 months, while 45% anticipate growth in their own institution's holdings.
The May data, however, predates June's sharp decline. Whether central bank buying continued at a comparable pace through gold's double-digit monthly loss will be reflected in the next WGC monthly report.
