Goldman Sachs says the recent slowdown in central bank gold purchases is temporary, driven by price volatility rather than falling demand. The comments come after Russia’s central bank sold gold reserves in January for the first time in months.
Analysts Lina Thomas and Daan Struyven said some reserve managers are pausing purchases until prices stabilize after gold’s sharp rally earlier this year. They added that central banks remain committed to gold as a hedge against financial and geopolitical risks.
Russia sold about 300,000 ounces (9.3 tonnes) of gold in January, its first reduction since October 2025. Despite the sale, the value of its reserves rose 23% to $402.7 billion, helped by high gold prices averaging $4,700 per ounce.
Other major buyers continue to accumulate. The People’s Bank of China added gold for the 15th consecutive month, with official holdings exceeding 2,300 tonnes. Emerging-market banks in Poland, Turkey, and India are also boosting reserves.
Gold prices hit nearly $5,600 per ounce in late January but have since fallen to the $4,900–$5,000 range. Goldman Sachs maintains a bullish outlook, forecasting $5,400 per ounce by year-end 2026. The firm expects central banks to buy 60–70 tonnes monthly this year.
Analysts say central banks provide a “sticky” foundation for gold, supported by private investors and ETFs, which reached a record $669 billion in January.
Investors are watching for renewed official buying, which could support further gains amid global uncertainty, de-dollarization trends, and ongoing market volatility.
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