WGC Downgrades Global Central Bank Gold Purchases as Early-Year Buying Falls Far Below Expectations

The World Gold Council (WGC) has indicated that central banks purchased far less gold at the beginning of this year than previously anticipated, despite a subsequent rebound in demand, with full-year purchases expected to decline overall.

In a report released on Thursday (30th), the WGC stated that central banks bought only 57 tonnes of gold in the first quarter—187 tonnes less than earlier projections. According to the council’s data, this marks the weakest start to a year in over a decade. This revision suggests that the overall pace of purchases this year may fall below that of 2025.

Initial forecasts had reassured bullish investors, suggesting that central banks—the key drivers behind gold’s multi-year rally—were aggressively re-entering the market after prices retreated from record highs. Since late February, when war risks involving Iran escalated, rising energy costs have intensified inflation concerns and delayed rate-cut expectations, causing gold prices to fall by approximately a quarter.

The WGC’s estimates include central bank purchases that are not disclosed by monetary authorities themselves. Metals Focus Ltd., a consultancy firm, combines public data, trade statistics, and field research on behalf of the council to calculate these estimated purchases.

Nonetheless, central bank demand rebounded sharply from April to June, with a net total of 289 tonnes purchased—the highest second-quarter figure on record. Poland led with 51 tonnes, bringing its first-half total to 82 tonnes, while China bought 33 tonnes during the quarter.

After hitting a record in January, gold prices declined due to concerns over tighter monetary policy but have found support around $4,000 per ounce since late June, as investors bought the dip at this level.