SadaNews – Central banks have returned to increase their gold purchases in May, indicating that the decline in momentum of the precious metal this year under the pressure of U.S. interest rate expectations has not diminished its luster as one of the reserve assets for monetary institutions.
Net gold reserves held by central banks increased by about 41 tons in May, according to the latest announced data collected by the World Gold Council from the International Monetary Fund and central banks up to June 30, 2026. Purchases were once again concentrated among a familiar group of buyers, led by Poland, China, Uzbekistan, and Kazakhstan, according to the report.
The data showed that the Polish central bank purchased 18 tons in May, raising its total since the beginning of the year to 64 tons. May’s transactions increased Poland’s gold holdings to 614 tons, approaching its target of 700 tons, according to the report. The Chinese central bank added 10 tons, marking the highest monthly increase since December 2024, continuing purchases for the twentieth consecutive month.
Gold Cuts Losses
Central bank purchases have been one of the most important support factors for gold this year, despite its price declines under the pressure of a rising dollar and investors’ expectations that inflation in the United States will lead to an increase in interest rates, which reduces the attractiveness of gold that does not yield returns for its holders.
However, the yellow metal reduced some of its losses at the end of last week, achieving its first weekly increase in five weeks, after U.S. jobs data weakened interest rate hike expectations this year.
The World Gold Council report mentioned that Uzbekistan added 9 tons of gold to its reserves in May, raising its purchases since the beginning of the year to 33 tons, while Kazakhstan bought 7 tons, and Singapore returned to buying for the first time since September 2025, adding 4 tons, with the central banks of the Czech Republic and Jordan purchasing 2 tons and 1 ton respectively. In contrast, Russia and Turkey continued to sell, with 6 tons and 3 tons sold respectively during the month.
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