Central banks maintained their gold accumulation in July, with China and Poland leading the purchasing activity, according to ING analysts Warren Patterson and Ewa Manthey. While the pace of acquisitions has decelerated compared to last year’s aggressive buying, the continued net purchases are providing structural support to gold prices amid ongoing global economic uncertainty.
The persistent demand from central bank reserves reinforces gold’s role as a safe-haven asset and monetary diversification tool. This institutional buying creates a price floor even during periods when retail and investment demand may soften. The slower pace suggests central banks are becoming more selective with timing but remain committed to building gold positions.
Traders should monitor whether this trend continues through the remainder of the year, as central bank activity typically represents long-term strategic positioning rather than short-term speculation. The Chinese and Polish central banks’ ongoing accumulation signals sustained confidence in gold as a reserve asset.
FXnCO Insight
Central bank buying provides downside price protection for gold, making pullbacks potential accumulation opportunities for traders with medium to long-term horizons.
Source: FXStreet