One number stands out to me: 289 tonnes of gold.
That’s how much central banks and other official institutions are estimated to have purchased during the second quarter, according to figures cited by Reuters.
That is an enormous amount of physical metal.
And the physical side of these purchases is what really matters. When a speculator opens a long position in futures, they gain price exposure. A central bank adding gold to its reserves is doing something very different — it is buying a reserve asset that may remain there for years or even decades.
That metal doesn’t behave like a short-term speculative position that can be closed within days when market sentiment changes.
At the same time, investment demand through gold-backed ETFs is starting to return. If Western investors begin buying more aggressively alongside continued official-sector purchases, the structure of gold demand could shift even further.
289 tonnes in just three months shows how significant the official sector has become as a buyer of physical gold.
And for me, one thing stands out: this isn’t a trade on the next Fed meeting.
It’s actual metal moving into long-term reserves.
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