While the global price of gold has fallen by more than 10% since April, Poland's central bank is making significant counter-trend purchases to increase its holdings.
The bank's Governor announced at a press conference in Warsaw on July 9th that the institution has purchased a total of 82 tonnes of gold so far this year, raising its total reserves to 632.4 tonnes.
The Governor revealed that since the release of official data in April, the bank has purchased an additional 37 tonnes of the precious metal. At current prices, this newly acquired gold is valued at approximately $5 billion. He stated that the central bank has taken advantage of the recent price decline to make continuous purchases. Of the total 632.4 tonnes of gold reserves now held by the Polish central bank, about 105 tonnes are stored within Poland, with the remainder held in London and New York.
Poland was already the largest gold buyer among global central banks in 2025, and based on its current pace of accumulation, it is on track to top the purchase rankings again in 2026. The Governor reaffirmed the central bank's reserve target is to increase its gold holdings to 700 tonnes. He emphasized that the increase is not for ranking competition but is based on strategic considerations for the nation's long-term financial security and stability. He also noted that gold's status in the reserve assets of central banks worldwide is continuing to rise, being viewed as a key asset for safeguarding financial security.
It is worth noting that the gold market experienced its most severe quarterly decline since 2008 in the second quarter, falling by approximately 14%. This was primarily due to rising expectations of Federal Reserve interest rate hikes, which pushed up the real yield of the US dollar and significantly diminished the appeal of holding the non-yielding asset, gold. However, the lower prices have conversely provided central banks, including Poland's, an opportunity to buy on the dip. Reports indicate that despite the price correction, continued central bank buying is expected to provide crucial support for the gold price.
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