Central banks around the world purchased a net 244 metric tons of gold in the first quarter of 2026, the fastest pace of buying in more than a year, even as spot gold traded near record highs above $4,700 per ounce in mid-May.
Kitco News reports that the sustained purchasing reflects a broader trend of reserve diversification away from U.S. dollar-denominated assets, a pattern that began accelerating after the 2022 sanctions freeze of Russian central bank reserves and has continued as geopolitical uncertainty persists. China's central bank extended its gold purchasing streak to 14 consecutive months through the end of 2025, bringing its stated holdings to 74.15 million fine troy ounces.
Goldman Sachs raised its 2026 gold price target to $5,400 per ounce in January, citing the entry of private sector investors alongside central banks as a new demand driver. JP Morgan set a Q4 2026 target of $5,055 per ounce. Physical gold ETF inflows reached $89 billion in 2025, the largest annual total on record.
Silver gained nearly 6.5 percent in a single week in mid-May, following copper prices higher on strength in industrial metals demand. Silver remains more than 30 percent below its all-time high set in January 2026, giving analysts room to argue that the white metal has further upside relative to gold.
Source: Kitco News -- https://www.kitco.com/news/article/2026-04-02/central-banks-remain-net-gold-buyers-february-despite-rising-geopolitical