Gold price deeply adjusts, central bank continues to accumulate

Song Anh |

Although gold prices have fallen sharply since the beginning of the year, many central banks continue to increase reserves, showing confidence in the long-term role of the precious metal.

While many investment funds and individual investors continuously reduced their gold holdings after a strong market correction, central banks still maintained a net buying trend, considering the decline in gold prices as an opportunity to continue to increase reserves.

At a recent press conference, the Governor of the Bank of Poland (NBP), Mr. Adam Glapiński, said that NBP has continuously bought gold in recent times to take advantage of the price adjustment period. According to him, the central bank of this country has bought 82 tons of gold since the beginning of the year and continues to aim to increase total reserves to 700 tons.

According to data from the World Gold Council (WGC), Poland continues to be in the group of central banks buying the most gold in the world. In the first quarter of 2026 alone, NBP net bought 31 tons, leading global central banks in terms of gold added to reserves.

The buying move took place in the context that gold prices have adjusted sharply compared to the peak set at the end of January. The pressure mainly comes from expectations that the US Federal Reserve (Fed) will maintain a tight monetary policy for longer, causing the USD and US government bond yields to increase, thereby reducing the attractiveness of gold - an asset that does not yield yields.

However, WGC's Central Bank Gold Reserves Survey 2026 shows that the gold accumulation trend of central banks is still very strong.

45% of central banks participating in the survey said they plan to increase their gold holdings in the next 12 months - the highest level since the survey was conducted. At the same time, nearly 90% of central banks expect the total gold reserves of the formal sector globally to continue to increase in the coming year.

According to the WGC, the demand for gold from central banks continues to be one of the important drivers supporting the market in the context that many countries are promoting the diversification of foreign exchange reserves and reducing dependence on assets valued in USD. This trend has been maintained continuously in recent years and shows no signs of weakening.

Although the short-term outlook for gold prices is still influenced by the Fed's monetary policy and inflationary developments in the US, persistent net buying by central banks is considered an important factor contributing to strengthening the long-term foundation of the gold market.

Song Anh
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