Central banks resumed increasing their gold purchases in May, indicating that the precious metal's declining momentum this year under pressure from US interest rate expectations has not diminished its appeal as a reserve asset for monetary institutions.
Net gold reserves at central banks increased by about 41 tons during May, according to the latest data published by the World Gold Council, compiled from the International Monetary Fund and central banks up to June 30, 2026. Purchases were again concentrated among a familiar group of buyers, primarily Poland, China, Uzbekistan and Kazakhstan, according to the report.
Data showed that Poland's central bank purchased 18 tons of gold in May, bringing its year-to-date holdings to 64 tons. May's transactions raised Poland's gold reserves to 614 tons, nearing its target of 700 tons, according to the report. The People's Bank of China also added 10 tons, its largest monthly increase since December 2014, marking its 20th consecutive month of purchases.
Gold reduces its losses
Central bank purchases have been one of the most important factors supporting gold this year, despite its prices falling under pressure from a rising dollar and investors' expectations that inflation in the United States will lead to an increase in interest rates, which reduces the appeal of gold, which does not generate returns for its holders.
But the yellow metal pared some of its losses at the end of last week, posting its first weekly gain in five weeks, after US jobs data weakened expectations of an interest rate hike this year.
The World Gold Council reported that Uzbekistan added 9 tons of gold to its holdings in May, bringing its year-to-date purchases to 33 tons. Kazakhstan bought 7 tons, and Singapore returned to buying for the first time since September 2025, adding 4 tons. The central banks of the Czech Republic and Jordan purchased 2 tons and 1 ton, respectively. Meanwhile, Russia and Turkey continued selling, with 6 tons and 3 tons, respectively, leaving the country during the month.
