Central banks slashed their gold purchases in early 2026

Financial Times reports that central bank gold buying in early 2026 was far weaker than previously estimated after a World Gold Council data revision cut first-quarter official-sector purchases from 244 tonnes to 57 tonnes, the lowest Q1 level in more than 15 years. The revision suggests a key source of support for bullion may be cooling just as gold has already dropped nearly 30% from its January peak. The WGC said some metal was reclassified out of official purchases, while opaque buying—especially from China—has made tracking flows harder. For the first half of the year, official institutions bought 345 tonnes, the weakest six-month total since 2022. The article also notes some sovereign funds in the Middle East sold gold to offset weaker oil and gas revenues, and gold-backed ETF outflows added further pressure. Overall, the story points to softer institutional demand and a potentially weaker floor for gold prices.