Central Banks Continue Robust Gold Purchases in May, Driven by Inflation and Geopolitical Risks

Central banks globally added a net 41 tonnes of gold to their reserves in May 2026, marking the second-highest monthly total of the year, according to data from the World Gold Council (WGC). This trend, consistent with a multi-year acceleration, is primarily driven by central banks' desire to hedge against inflation and geopolitical risks. Poland led the purchases with 18 tonnes, followed by China with 10 tonnes, extending its streak of consecutive monthly purchases. A WGC survey indicates that 89% of central banks expect global gold holdings to increase over the next 12 months.