Global Central Banks' Gold Buying Surge Resumes: The Strategic Value of Gold Reaffirmed in a Multipolar Currency System

Global Central Banks' Gold Buying Surge Resumes: The Strategic Value of Gold Reaffirmed in a Multipolar Currency System

In September 2026, the global precious metals market saw a new round of price increases, with London spot gold breaking through the $4,300/ounce mark and silver prices climbing to $30.5/ounce, hitting a three-year high. One of the core drivers behind this rally was the "gold buying surge" by global central banks, which continued to increase their gold reserves. Against the backdrop of an accelerating multipolar currency system, gold's strategic value as a "non-sovereign currency reserve" was re-evaluated by the market. Asia-Pacific central banks became key drivers of this trend, and their gold purchases not only reshaped the global gold market landscape but also provided new allocation logic for Asia-Pacific investors.

I. Current Status of Global Central Bank Gold Buying: 21 Consecutive Months of Net Purchases, Significant Contribution from Asia-Pacific

According to the latest "Global Gold Demand Trends Report H1 2026" by the World Gold Council, global central banks net purchased 483 tons of gold in H1 2026, a historical high for the same period, marking the 21st consecutive month of net purchases. This figure not only surpassed the 2025 H1 record (456 tons) but also indicated that central bank gold buying has shifted from a "periodic adjustment" to a "normalized growth" phase.

Regionally, Asia-Pacific central banks were the main drivers of global gold purchases, accounting for about 60% of net purchases. Among them, the People's Bank of China, the Reserve Bank of India, and the Bank of Korea stood out, forming the "three horses" of gold buying in the Asia-Pacific region.

• People's Bank of China: "Gold Reserve" Support for RMB Internationalization: As one of the world's largest gold reserve holders, the People's Bank of China net purchased about 120 tons of gold in H1 2026, a 15% increase from H1 2025. This move reflects the PBOC's strategic considerations to hedge exchange rate risks in the RMB internationalization process and enhance the diversification of reserve assets. By the end of June 2026, China's gold reserves reached 2,100 tons, a 6% increase from June 2025, ranking fifth globally, behind the U.S., Germany, Italy, and France. World Gold Council analysts noted that the PBOC's gold purchases "are not only a tool to hedge dollar volatility but also the 'ballast' for the RMB to become an international reserve currency".
• Reserve Bank of India: Dual Demand for Consumption and Reserves: India is one of the world's largest gold consumers. In H1 2026, the RBI net purchased 85 tons of gold, a 10% increase from H1 2025. The RBI's gold buying logic is dual: on one hand, strong domestic gold consumption demand (650 tons in H1 2026, up 10% year-on-year) means the central bank can meet market supply by increasing reserves; on the other hand, the RBI needs to hedge reserve risks from dollar volatility, making gold, as an "anti-inflation and anti-exchange rate volatility" asset, its top choice for reserve diversification. By the end of June 2026, India's gold reserves reached 800 tons, a 10% increase from June 2025, ranking tenth globally.
• Bank of Korea: Hedging Choice Amid Geopolitical Risks: The Bank of Korea resumed gold purchases after 13 years, net buying 30 tons in H1 2026, becoming a new force in Asia-Pacific gold buying. The BOK's motivation mainly stems from geopolitical risks and won-dollar exchange rate volatility. In 2026, tensions on the Korean Peninsula persisted, and won-dollar volatility intensified. The BOK increased gold reserves to enhance the "hedging attribute" of its reserve assets. By the end of June 2026, Korea's gold reserves reached 150 tons, a 20% increase from June 2025, a 13-year high.

II. Multipolar Currency System: The "Reaffirmation" Context of Gold's Strategic Value

Behind the global central bank gold buying surge is the accelerating formation of a multipolar currency system. In recent years, the dollar's hegemony has faced challenges, with trends like RMB internationalization, eurozone integration, and yen internationalization pushing the global currency system toward "multipolarity". In this context, gold, as a "non-sovereign currency", has unique strategic value, making it a key choice for central banks' reserve assets.

First, gold is the ultimate "safe-haven asset". In a multipolar system, central banks need to address multiple challenges like exchange rate volatility, high inflation, and geopolitical risks. In 2026, U.S. inflation remained above 3%, Fed policy uncertainty increased, and the dollar index volatility intensified; the eurozone's economic recovery was weak, with the euro falling 5% against the dollar; the RMB internationalization process accelerated but faced exchange rate risks. Gold's safe-haven attribute makes it the top choice for reserve assets. World Gold Council data shows that in H1 2026, global gold ETF net inflows reached $12 billion, with Asia-Pacific accounting for 50%, mainly due to investors' hedging demand for the "multipolar currency system".

Second, gold is an effective tool as an "anti-inflation asset". In 2026, global inflation remained high, especially in the Asia-Pacific region, where inflation rates in China and India exceeded 2%. Gold's long-term anti-inflation ability makes it a key tool against inflation. World Gold Council research shows that over the past 10 years, gold prices have risen by an average of over 8% annually, far higher than the global inflation rate (about 2.5%). For Asia-Pacific central banks, increasing gold reserves can "hedge the erosion of inflation on reserve assets" and maintain the real purchasing power of reserves.

Finally, gold is an important supplement as a "liquid asset". In a multipolar system, central banks need to hold highly liquid assets to cope with emergencies (e.g., capital outflows, financial crises). Gold's liquidity is second only to the dollar and euro, and it is not subject to sovereign credit risk, making it central banks' "liquid reserves". For example, in 2026, when the Fed raised interest rates and tightened dollar liquidity, central banks could sell gold to obtain dollars to address liquidity pressures.

III. Asia-Pacific Region: "Resonance" Between Central Bank Gold Buying and Investor Allocation

The Asia-Pacific region is a key area in the global gold market, where central bank gold buying and investor allocation form a "resonance". On one hand, Asia-Pacific central banks continue to increase gold reserves, pushing up gold prices; on the other hand, Asia-Pacific investors (including institutions and individuals) are also increasing gold allocations, further supporting prices.

From institutional investors, net inflows into gold ETFs (Exchange-Traded Funds) in the Asia-Pacific region continued to rise. In H1 2026, Asia-Pacific gold ETF net inflows reached $12 billion, a 25% increase from H1 2025. Among them, China, India, and Korea's gold ETF net inflows reached $5 billion, $3 billion, and $2 billion respectively, becoming key growth points in the global gold ETF market. For example, China's "Huaxia Gold ETF" had net inflows of $3 billion in H1 2026, a 40% increase from H1 2025; India's "SBI Gold ETF" had net inflows of $2.5 billion, a 35% increase. These institutional investors' allocation behaviors, combined with central bank gold buying, formed a "synergy" that drove gold prices up.

From individual investors, gold consumption and investment demand in the Asia-Pacific region is strong. In H1 2026, China's gold consumption reached 800 tons, a 12% increase from H1 2025; India's gold consumption reached 650 tons, a 10% increase. This consumption demand not only supports gold prices but also boosts the activity of the gold market. For example, China's "gold jewelry consumption" grew by 15% year-on-year, and India's "gold investment demand" grew by 18%. The participation of individual investors has created a "triple-drive" pattern of "central bank gold buying + individual consumption + institutional allocation" in the Asia-Pacific gold market.

IV. Market Impact: Gold Price Rise and Investment Strategy Adjustments

The global central bank gold buying surge pushed gold prices above the $4,300 mark. On September 21, 2026, London spot gold was quoted at $4,320/ounce, a 15% increase from the same period in 2025; London spot silver was quoted at $30.5/ounce, a 20% increase. This rally not only affected the precious metals market but also had a profound impact on the investment strategies of Asia-Pacific investors.

First, the rise in gold prices boosted returns on gold-related assets. In H1 2026, the yield of gold ETFs in the Asia-Pacific region reached 12%, higher than the stock market (8%) and bond market (3%) in the same period. For example, China's "Huaxia Gold ETF" had a yield of 15% in H1 2026, and India's "SBI Gold ETF" had a yield of 13%. These returns attracted more investors to participate in gold investment.

Second, the rise in gold prices changed investors' asset allocation logic. In the past, Asia-Pacific investors tended to allocate more to stocks and bonds, but now, more and more investors are including gold as part of their "strategic reserves". According to a survey by Borun Asia-Pacific Finance, in H1 2026, 35% of investors in the Asia-Pacific region increased their gold allocation, with 20% of them raising the gold allocation ratio from 5% to over 10%. This change reflects investors' improved awareness of risks in the "multipolar currency system".

Finally, the rise in gold prices drove innovation in the gold market. In 2026, the trading volume of gold derivatives (such as gold futures and options) in the Asia-Pacific region increased by 30% year-on-year, with gold futures trading volume reaching $500 billion and gold options trading volume reaching $200 billion. These innovative products provide more investment tools for investors, meeting the needs of different risk preferences.

V. Investment Recommendations: "Gold Allocation" Strategies for Asia-Pacific Investors

In response to the current market situation, Asia-Pacific investors can adopt the following strategies to hedge risks in a multipolar currency system and achieve asset preservation and appreciation:

• Allocate to Physical Gold: The "Ballast" for Long-Term Holding: Physical gold (such as gold bars, gold coins) is the foundation of gold investment, with the characteristics of preserving and increasing value. Investors can purchase physical gold from reputable banks (e.g., Industrial and Commercial Bank of China, State Bank of India) or jewelry stores (e.g., Chow Tai Fook in China, Tata Jewels in India) and hold it long-term. The advantage of physical gold is that it is "unaffected by market fluctuations", suitable for risk-averse investors. For example, Chinese investors can buy "ICBC Gold Bars", and Indian investors can buy "Tata Gold Coins" to hold long-term, hedging against inflation and exchange rate risks.
• Invest in Gold ETFs: Balancing Liquidity and Returns: Gold ETFs are funds that track gold prices, with high liquidity and convenient trading. Gold ETFs in the Asia-Pacific region (such as China's "Huaxia Gold ETF", India's "SBI Gold ETF", Korea's "KB Gold ETF") perform well, and investors can pay attention to them. The advantage of gold ETFs is that they can be bought and sold at any time, suitable for short-term investors. For example, Chinese investors can buy "Huaxia Gold ETF" through a securities account, and Indian investors can buy "SBI Gold ETF" through a stock account to gain from gold price increases.
• Participate in Gold Futures: The "Leverage Tool" for Professional Investors: Gold futures are leveraged trades with high risk, suitable for professional investors. Investors can participate in gold trading through futures markets (e.g., Shanghai Futures Exchange, India's MCX, Korea's KRX) to gain short-term returns. The advantage of gold futures is the "leverage effect", which can amplify returns but may also amplify losses. For example, professional investors can use gold futures to hedge risks or engage in speculative trading.
• Monitor Central Bank Gold Buying Trends: Follow the "Wind Vane" for Allocation: Central bank gold buying is the "wind vane" of the gold market. Investors should closely monitor gold purchase data from central banks (such as the World Gold Council's "Global Gold Demand Trends Report", central banks' reserve asset reports) and adjust investment strategies in a timely manner. For example, when the PBOC increases gold purchases, investors can increase their gold allocation; when the RBI reduces gold purchases, investors can appropriately reduce their holdings.

Conclusion

The global central bank gold buying surge resumes, and gold's strategic value is reaffirmed in a multipolar currency system. Asia-Pacific central banks have become key drivers of this trend, pushing up gold prices and bringing new opportunities for investors. Asia-Pacific investors should seize this opportunity, rationally allocate gold, hedge risks in a multipolar currency system, and achieve asset preservation and appreciation. In the future, as the multipolar currency system further develops, gold's strategic value will become more prominent, becoming an indispensable "strategic reserve" for investors.