Global central banks purchased 244 tonnes of gold on a net basis in the first quarter of 2026, a 3% increase year-over-year that exceeded both the prior quarter and the five-year quarterly average, according to World Gold Council demand data.
The sustained pace of official sector buying has been one of the defining features of the gold market since 2022, when central banks posted their highest annual net purchases in decades. The Q1 2026 data indicates that trend has not reversed despite gold trading near all-time highs: institutions are continuing to add to reserves regardless of entry price.
Total identifiable gold demand in 2025, the most recent full-year data available, was driven by jewelry consumption in Asia and the Middle East alongside investment bar and coin demand, which rose as retail investors in multiple markets sought inflation protection and currency hedging. Exchange-traded fund flows, which were negative through much of 2022 and 2023 as interest rates rose, have turned positive again in 2025 and early 2026 as rate expectations have shifted.
Supply remained constrained in 2025, with global gold mine production growing at a modest pace. Recycling supply increased marginally as higher prices incentivized more scrap recovery. Total supply growth has not kept pace with demand growth, contributing to the price appreciation seen through the first half of 2026.
Source: World Gold Council -- https://www.gold.org/research