Goldman Sachs expects central bank gold purchases to slow down slightly, but will continue to support gold prices

On June 22, Goldman Sachs predicted that the central bank will continue to purchase gold at a rate of 50 tons per month in 2026 and slow down to 40 tons per month in 2027. Even though the monthly gold purchase rate has dropped from the previous peak, this trend still provides lasting structural bottom support for gold prices. A record proportion of central banks have expressed intention to increase their holdings of gold reserves, a demand background that provides a substantial buffer for downside risks to gold prices. Goldman Sachs 'forecast means that even if monthly data fluctuates, central bank demand will remain one of the most sustained structural supports for gold prices over the next two years. A separate World Gold Council survey of 76 central banks conducted between February and May also supports this view. A record 45 percent of respondents said they expect to increase their holdings of gold in the next 12 months, the highest level in the history of the survey. About 90% of respondents expect global central bank gold holdings to rise over the same period, while the rest expect them to remain broadly stable. No respondents expected a decline.