The XAU/USD index continues to trade around $4,300 on Wednesday, with the price moving sideways as gold maintains its strong status among global assets. Interest from retail investors, institutional funds, and central banks remains high, with demand underpinning gold’s performance as one of the leading assets over the last five years. Prices have surged nearly 150% during this period, reflecting sustained appetite worldwide.
Central banks accelerate gold accumulation
Central banks from several countries in the Global South, Asia, Africa, and Europe have increased their gold reserves in 2026, seeking to diversify away from the US dollar. These purchases come in response to the growing $40 trillion US national debt, which has led some central bank officials to reduce reliance on the US dollar. The strategy reflects a broader reevaluation of reserve practices amid financial and geopolitical shifts.
So far this year, seven countries have emerged as the most active gold buyers. Their combined accumulation has reached 219 tonnes, amounting to a total expenditure of $31.3 billion. Many analysts have interpreted these aggressive acquisitions as evidence of a long-term bullish outlook for the metal.
| Country | Gold Purchased (tonnes) | Value ($ billion) |
|---|---|---|
| Poland | 82 | 11.72 |
| Uzbekistan | 41 | 5.86 |
| China | 40 | 5.72 |
| Kazakhstan | 27 | 3.86 |
| Czech Republic | 11 | 1.57 |
| Singapore | 10 | 1.43 |
| Chile | 8 | 1.14 |
Institutions managing these purchases are actively seeking to maximize returns while hedging against currency fluctuations. The move toward gold comes as faith in traditional currency reserves, especially the US dollar, has begun to wane in some quarters. Analysts point to the rapid pace of central bank purchases as a possible indicator that global reserve diversification will remain a key theme throughout the year.
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Gold’s strong performance has drawn positive reactions from markets, with consensus among analysts leaning bullish for the rest of the year. Several central banks are reportedly already in profit from their recent purchases, motivating ongoing interest and potentially further acquisitions.
John LaForge, Chief Alternative Strategist at Ned Davis Research, has projected that gold prices could top $10,000 if current US fiscal conditions persist. LaForge continued to emphasize the connection between the US national debt—now reaching $40 trillion—and rising gold valuations. His assessment stands out as among the most ambitious public forecasts for the precious metal this year.
Mini dictionary: Ned Davis Research, a financial research firm specializing in independent market analysis for institutional and retail clients.
John LaForge from Ned Davis Research has predicted that, “with the US national debt at $40 trillion, gold could exceed $10,000 if fiscal imbalances continue.”
Many observers interpret these sustained investments and bullish outlooks as indicators that global demand for gold is likely to remain strong. With continued macroeconomic uncertainty, central bank gold acquisitions may play an increasingly significant role in shaping both reserves policy and market sentiment for the remainder of 2026.
