Gold Price Falls for 4th Consecutive Month...Poland and China's Central Banks Storm Buy

▲ Gold/AI generated image

Although gold prices have fallen for four consecutive months, central banks in various countries have increased their gold purchases again. Despite the sharp drop in prices, official sector demand has held up, strengthening the analysis that the gold market's long-term defense line depends on central bank buying.

According to BeInCrypto, a cryptocurrency media outlet, on July 2 (local time), central banks purchased 41 tons of gold on a net basis in May, according to data from the World Gold Council. Gold prices fell 1.8% in May and then plunged 11.74% in June. Although a monthly decline was recorded for four consecutive months until June, central bank demand remained strong.

Gold prices widened their decline at the end of June. BeInCrypto reported that gold fell to $3,942 per ounce on June 30, marking its lowest level since early November 2025. The quarterly decline as of the quarter ending June 30 was approximately 16%, making it the worst quarterly performance since Q2 2013.

Poland led the buying spree. The National Bank of Poland added 18 tons of gold in May, marking its fourth consecutive month of double-digit purchases. Poland has accumulated 64 tons this year, increasing its gold reserves to 614 tons.

The People’s Bank of China also continued its buying spree. China purchased 10 tons of gold in May, marking its 20th consecutive month of purchases and the largest monthly increase since December 2024. China's gold reserves have reached approximately 2,331 tons. The Monetary Authority of Singapore purchased 4 tons, its first purchase since September 2025, and plans to launch central bank gold storage services in October 2026.

Uzbekistan and Kazakhstan also added 9 tons and 7 tons, respectively. In contrast, Turkey and Russia maintained a net selling stance. In the World Gold Council's 2026 survey, 89% of respondents expected global gold reserves to increase over the next 12 months, and 45% anticipated their own institutions to expand gold holdings. However, the May figures are based on data prior to the sharp decline in June, leaving the next monthly report as a turning point to confirm central bank buying conviction.

[Article Key Summary]

-Central banks purchased 41 tons of gold on a net basis in May, with Poland leading the purchases with 18 tons.

-Gold prices fell 11.74% in June, marking a monthly decline for four consecutive months.

-China continued its gold purchases for 20 consecutive months, and in the 2026 survey, 89% of respondents expected an increase in global gold reserves.

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