Central Bank Gold Purchases — Demand Cycle

Central banks collectively hold ~35,000 tonnes of gold (about 20% of all above-ground gold).

Since 2010, emerging market central banks have been systematic net buyers — China, India, Turkey, Poland, and others have diversified reserve assets away from US Treasuries into gold following the USD weaponization through sanctions.

The structural buying creates a "buyer of last resort" floor:

When institutional investors sell gold ETFs (a cyclical, rate-sensitive flow), central bank buying absorbs supply and prevents capitulation-level price declines.

The World Gold Council publishes quarterly central bank demand data — when purchases exceed 1,000 tonnes/year (as in 2022 and 2023, both record years), the structural demand provides 15-20% additional price support above what technical/rate signals would imply.