Gold Hits Record $2,850 on Central Bank Buying Spree
The precious metal surged to an all-time high as central banks continue to diversify reserves away from the dollar, with China, India, and Poland among the top buyers.
Elena Vasquez
Commodities Editor
Spot gold surged to a record $2,850 per troy ounce on Tuesday, extending a rally that has seen the metal gain 8% year-to-date. The move was driven by continued central bank purchases, safe-haven demand amid geopolitical tensions, and a pause in US rate hikes.
The World Gold Council reported that central banks purchased a net 1,037 tonnes of gold in 2025, the third consecutive year of 1,000+ tonne buying. The People's Bank of China was the single largest buyer at 225 tonnes, followed by the Reserve Bank of India at 72 tonnes and the National Bank of Poland at 68 tonnes.
"Central bank gold buying is a structural shift, not a cyclical one," said Elena Vasquez, commodities editor. "De-dollarization, sanctions risks, and the desire for reserve diversification are driving demand that shows no signs of abating."
Gold's performance in 2026:
- Year-to-date: +8.2%
- 1-year return: +24.6%
- All-time high: $2,850 (Feb 11, 2026)
Goldman Sachs raised its year-end gold target to $3,100, citing "unstoppable central bank demand" and the potential for a Fed rate cut in H2 2026. JPMorgan sees gold reaching $2,950 by mid-year.
Silver also rallied, gaining 2.1% to $33.40, while gold mining stocks (GDX) jumped 3.4%. The gold-to-silver ratio narrowed slightly to 85.3.