Central banks slashed their gold purchases in early 2026 - Financial Times

Central bank buying has been a cornerstone of gold demand in recent years, so the reported slowdown in early 2026 marks a notable shift in the market’s underlying dynamics. According to the Financial Times, official sector purchases fell sharply during the period, prompting analysts to reassess one of the key supports that had helped keep prices elevated. The development suggests that central banks, after an extended run of accumulations, may be stepping back—possibly in response to record-high valuations or a recalibration of reserve management strategies.

From a market perspective, the implication is straightforward: a key marginal buyer is reducing its footprint. If the trend continues, gold’s price floor could become more dependent on other participants, such as institutional investors and physical demand from jewelry and technology sectors. However, official sector behavior has historically been driven by long-term strategic considerations rather than short-term price fluctuations.

The important question is whether this represents a temporary pause or a prolonged change in direction. Watchers will look to subsequent monthly data and central bank communications for clarity, particularly from large emerging-market buyers who have dominated recent activity.