As of the week ending May 8, 2026, international spot gold prices held above $4,700 per ounce, continuing recent consolidation. While prices pulled back after peaking at a record $5,400 earlier in the year, one of the market’s most reliable signals has been repeatedly confirmed: global central banks are buying the dip without hesitation. Official-sector buying has built a solid floor under the gold market.
PBoC Extends 18-Month Buying Streak
The People’s Bank of China is the most influential buyer in this trend. As of end-April 2026, China’s gold reserves rose to 74.64 million ounces (approximately 2,321.57 tonnes), adding 260,000 ounces from the previous month – marking the 18th consecutive month of increases. April’s monthly purchase of about 8 tonnes was the largest since December 2024, representing the biggest single-month increase in nearly 16 months. Market participants widely believe that the PBoC views price pullbacks as buying opportunities, and its pace of accumulation has actually accelerated as gold prices have adjusted.
From a broader perspective, China still has ample room to add. Gold currently accounts for only about 9.1% of China’s total foreign exchange reserves – far below the global average of roughly 28%, and even further from the 50%+ ratios seen in the US and Europe. As cracks in the US dollar’s credit system continue to widen, adding gold is not only a way to optimise reserve portfolios but also a necessary step to enhance sovereign creditworthiness.
Eastern European Gold Rush Broadens
One of the most noteworthy recent developments is the wave of gold accumulation sweeping across Eastern Europe. Poland is by far the most aggressive official buyer. Over the past three years, Poland has added 321 tonnes of gold to its reserves, bringing its total holdings to approximately 600 tonnes by end-April 2026. More strikingly, the Governor of the National Bank of Poland recently stated that the bank will not stop and has set a final target of 700 tonnes. At the pace seen since 2023, Poland is likely to break into the top ten global official gold holders this year.
Meanwhile, the Czech National Bank bought about 2 tonnes of gold in April, bringing its year-to-date net purchases to 8 tonnes and lifting its total reserves above 79 tonnes. Kosovo’s central bank has also purchased gold for the first time in its history, a sign that even smaller emerging market economies view bullion as an essential stabiliser in reserve management.
Official Commitment is the Market’s Biggest Confidence Booster
According to the latest World Gold Council report, global central banks net purchased 244 tonnes of gold in the first quarter of 2026 – up 3% from a year earlier and significantly above the five-year average. Analysts point out that the strategic value of gold as a reserve asset is being systematically re-evaluated. The de-dollarisation trend is one direct driver, but the freezing of Russian reserves by Western powers following the Ukraine war has shattered many countries’ confidence in the safety of dollar assets.
Central banks’ accumulation behaviour has undergone a qualitative shift in the past two years. Compared with past price sensitivity, gold buying today is more about national-level risk diversification and geopolitical hedging. As Barbara Lambrecht, commodity analyst at Commerzbank, put it: “Central bank purchases have been among the key drivers of gold demand for over four years. In the first quarter, purchases were even slightly above the five-year average.” For gold prices, this means that whenever short-term speculative money retreats, there is a visible official hand ready to step in at lower levels.