Global central banks are continuing to accumulate gold at accelerated rates, reinforcing the precious metal's position as the preferred reserve asset for sovereign institutions. According to data from the Kobeissi Letter, central banks acquired 321 tonnes of gold during the third quarter of 2026—the largest quarterly amount in almost two years and the fifth-largest on record.
Purchases increased 8% from 296 tonnes in the second quarter and surged dramatically from 58 tonnes in the first quarter. Year-to-date gold demand reached 675 tonnes, 6% higher than the same period in 2025, compared to a five-year quarterly average of approximately 227 tonnes.
Major Purchasers
China and Poland emerged as the standout buyers. China added 63 tonnes during Q3, while Poland purchased 40 tonnes. Kazakhstan and Uzbekistan each acquired 14 tonnes, and the Czech Republic continued its multi-year accumulation program.
The buying momentum continued beyond September. The People's Bank of China added another 25.8 tonnes in October, marking its largest monthly purchase in three years. Poland bought an additional 27 tonnes that month, bringing its reserves to its previously announced target of 700 tonnes. Poland's central bank governor stated he saw no reason for the country to stop accumulating the precious metal.
The World Gold Council noted that reserve diversification and risk management remain key motivations for central bank purchasing. Gold exchange-traded fund demand also rebounded strongly in Q3, adding 211 tonnes.
Gold Outperforms Bitcoin
Measured against bitcoin rather than the dollar, gold has demonstrated significant relative strength. The XAU/BTC ratio rose from approximately 0.047 in early October to nearly 0.057, representing a surge of roughly 20%. This means an ounce of gold now exchanges for considerably more bitcoin than it did a month earlier.
The divergence reflects differing performance trajectories. Bitcoin traded above $80,000 for much of October before declining to approximately $65,000. Gold also lost ground against the U.S. dollar, closing Friday at around $3,900 per ounce, but its losses have been significantly smaller than bitcoin's.
Bitcoin has faced pressure from deleveraging, exchange-traded fund outflows, and broader risk-off market conditions, while central banks have aggressively accumulated gold. The comparison does not necessarily undermine bitcoin's longer-term scarcity argument, as central banks operate under different constraints from private investors and gold carries centuries of historical precedent as a store of value.
