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

Central bank gold buying slowed sharply in early 2026, according to Financial Times reporting, marking a notable pause after a prolonged stretch of heavy official-sector accumulation. The shift matters because central banks have been among the most consistent sources of gold demand in recent years, and their purchases have often provided a steady bid beneath the market during periods of geopolitical and inflation uncertainty.

The development does not, on its own, signal a change in the long-term case for gold as a reserve asset. Official-sector demand tends to move in lumpy, policy-driven cycles rather than smooth trends, and a single quarter of reduced buying can reflect timing, budget considerations, or shifting reserve-management priorities rather than a strategic exit. That distinction is central to interpreting the data correctly.

What to watch: whether the slowdown persists across subsequent quarters or proves temporary, and whether other buyers—exchange-traded funds, retail investors, or jewelry demand—fill the gap. Sustained official-sector restraint could remove a supporting factor from the gold market, while a resumption of purchases would reinforce gold's role in reserve portfolios.