Central Banks Bought Less Gold Than Previously Thought in First Quarter, WGC Says

By Giulia Petroni

Central banks bought far less gold than initially thought at the start of the year, with annual demand from the sector now expected to decline compared to 2025, according to the World Gold Council.

The industry group revised down estimates for central bank purchases to 57 metric tons in the first quarter--the lowest first-quarter level in more than a decade--from 244 tons previously.

"Central banks remain on course for another strong year of net purchases, supported by portfolio diversification, and inflation- and risk-hedging requirements, but annual demand is expected to finish below the 2025 total," the WGC said Thursday in its latest report.

Central-bank demand has been one of the biggest drivers of gold in recent years. The precious metal's price has fallen more than 20% since the Iran war began in late February, as higher energy costs fueled inflation concerns and raised expectations of interest-rate hikes in the U.S., which raise the opportunity cost of holding a non-yielding asset.

The WGC said the revision reflected a reclassification of gold previously attributed to central banks and other official institutions into the "over-the-counter and other" category.

Demand, however, rebounded in the second quarter, with central banks buying 289 tons. Poland was the largest buyer with 51 tons, followed by China with 33 tons.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

July 30, 2026 12:21 ET (16:21 GMT)