Central banks accelerated gold buying in May as governments continued shifting more of their reserves into the precious metal despite recent price volatility, according to new data from the World Gold Council.
Released Thursday, the report said official sector gold reserves increased by a net 41 tonnes during the month, marking the second-largest monthly increase of 2026 after February’s surge. The latest figures showed that purchases remained concentrated among several familiar buyers led by Poland and China, while only a handful of countries reduced their holdings.
Marissa Salim, senior research lead for Asia-Pacific at the World Gold Council, said central banks returned to the market with renewed momentum during May. She noted that official buying remained heavily concentrated among the same countries that have driven demand throughout the past year.
Poland led all buyers after adding 18 tonnes of gold during the month. Meanwhile, China purchased 10 tonnes, while Uzbekistan acquired nine tonnes and Kazakhstan added seven tonnes. Singapore also returned as a buyer, purchasing four tonnes for its first monthly net addition since September 2025.
However, two countries continued trimming their reserves. Russia sold six tonnes during May, while Turkey reduced its holdings by three tonnes.
Poland has also remained the largest sovereign gold buyer this year. The country has accumulated 64 tonnes during 2026, followed by Uzbekistan with 33 tonnes, China with 25 tonnes and Kazakhstan with 20 tonnes.
Read more: NevGold reports over 93 per cent gold recovery after antimony processing at Limousine Butte
Read more: NevGold positions Nevada project for near-term antimony output
China’s marks largest monthly addition since December 2024
Additionally, central bank sentiment toward gold remains overwhelmingly positive despite recent market swings. Salim pointed to the World Gold Council’s ninth Central Bank Gold Reserves Survey, which found that 89 per cent of respondents expect global central bank gold reserves to grow over the next 12 months.
A record 45 per cent also expect their own institutions to increase gold holdings during that period.
The survey results arrived after gold prices retreated sharply following the outbreak of fighting between Iran and Israel earlier this year. Even so, reserve managers continued adding bullion instead of reducing exposure.
Poland extended its buying streak for a fourth consecutive month with another double-digit purchase. Since February alone, the country has added 64 tonnes to its reserves.
Its official holdings now total 614 tonnes, leaving the country closer to its long-term target of 700 tonnes.
Meanwhile, China’s latest purchase marked its largest monthly addition since December 2024. The acquisition also represented the country’s 20th consecutive month of net gold buying.
China has accumulated 25 tonnes so far this year. Its official reserves now total roughly 2,331 tonnes, representing about 9 per cent of the country’s overall foreign exchange reserves.
Uzbekistan also maintained its steady pace of accumulation. The country’s central bank purchased nine tonnes during May, bringing year-to-date purchases to 33 tonnes.
Gold now represents approximately 87 per cent of Uzbekistan’s total reserves, giving the country one of the world’s highest concentrations of official gold holdings.
Additionally, Kazakhstan added another seven tonnes during the month. Its reserves now stand at 361 tonnes, equal to roughly 78 per cent of total reserves.
Read more: NevGold launches 20,000-metre drill campaign at Nevada antimony-gold project
Read more: NevGold Corp. reports antimony grades up to 53.7 per cent at Nevada project
South Korea considering different investment approach
Singapore also re-entered the market after several months on the sidelines. Its purchase lifted total holdings to 197 tonnes.
Salim also noted that Singapore plans to introduce central bank gold vaulting services in October 2026. The initiative supports the country’s broader effort to establish itself as a regional gold trading and storage hub.
Elsewhere, the Czech National Bank purchased two tonnes during May, while Jordan’s central bank added one tonne.
However, Russia continued reducing its official reserves. The country has now sold a net 34 tonnes during 2026, lowering total holdings to 2,292 tonnes.
Meanwhile, Turkey has sold 81 tonnes so far this year after another three-tonne reduction in May. The country remains the largest net seller among central banks during 2026.
South Korea may soon expand its exposure to gold through a different investment approach.
According to Salim, the Bank of Korea has completed preparations to invest in overseas gold-backed exchange-traded funds as part of its broader foreign currency diversification strategy. The central bank has not confirmed whether it has made any purchases because of its confidentiality policies.
Instead of buying physical bullion, the institution reportedly favours gold-backed ETFs because they offer strong liquidity while avoiding the costs of storing metal.
The Bank of Korea currently holds 104 tonnes of gold, equal to about 3 per cent of its total reserves. That proportion remains relatively low compared with many other emerging market central banks.
Additionally, Salim noted that central banks rarely use gold-backed ETFs to gain exposure to the metal. Only 4 per cent of respondents to the World Gold Council survey reported using ETFs rather than holding physical gold.
Read more: NevGold pushes toward potential 2027 antimony production at Limousine Butte
Read more: NevGold reports more positive drill results as gold-antimony resource estimate nears
Persistent central bank buying creates ripple effects across industry
Latin America has also emerged as a growing source of official gold demand during 2026.
Chile has accumulated roughly eight tonnes so far this year, according to the World Gold Council’s analysis. Guatemala has added two tonnes, while Bolivia and Uruguay have each purchased one tonne.
However, Salim cautioned that it remains too early to determine whether broader geopolitical developments will encourage additional Latin American central banks to expand their gold reserves or whether the recent buying activity will remain limited to only a few countries.
Persistent central bank buying could create ripple effects across the global gold industry, from mining companies to jewellery manufacturers and industrial users. As governments continue adding bullion to their reserves, they provide a dependable source of demand that can help support gold prices during periods of weaker investor activity. Higher and more stable prices often encourage producers to expand operations, advance development projects and increase exploration spending.
Large producers such as Barrick Mining Corp (TSE: ABX) (NYSE: B) (ETR: ABR0) could benefit from stronger cash flow if elevated gold prices persist. Higher margins may allow the company to invest in mine expansions, develop new projects or strengthen shareholder returns. Meanwhile, emerging developers such as NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) could also gain. Strong bullion prices often improve the economics of developing lower-grade deposits while making it easier for junior companies to attract financing for exploration and construction.
However, sustained high prices can pressure jewellery manufacturers and retailers. As gold becomes more expensive, consumers often delay purchases, buy lighter pieces or shift toward lower-cost alternatives.
NevGold Corp is a sponsor of Mugglehead news coverage
.
