Central banks slashed their gold purchases in early 2026 - Financial Times

The Financial Times reports that central banks sharply scaled back their official gold purchases in the early months of 2026. This marks a notable divergence from the record-setting accumulation streak that defined the previous several years, when institutions sought to diversify reserve assets amid geopolitical tension and volatile currency markets.

Central bank demand has been a critical structural driver of the gold market. When official institutions buy heavily, they provide a steady, price-insensitive bid that anchors investor sentiment. A slowdown suggests policymakers may feel sufficiently hedged against dollar or systemic risk, prompting them to pause portfolio rebalancing. Consequently, gold prices may become more reactive to macro data—such as inflation prints or real yields—than to official-sector flows.

The key variable to watch is whether this represents a tactical pause or a strategic reversal. Future reserve disclosures and high-frequency reports on bullion trade will reveal if the trend persists. Should demand recover later in the year, it would signal renewed caution about the global reserve framework; if it continues to weaken, the market may need to rely more heavily on private investment to set the floor.