Gold prices smashed through $3,300 per ounce for the first time on Friday, settling at a record $3,318 after the World Gold Council released its Q1 2026 Gold Demand Trends report showing central banks purchased 340 tons in the quarter — the strongest quarterly official-sector buying recorded since 1968 and 22% above the prior record set in Q3 2022.
The People's Bank of China added 82 tons to its reserves, the 28th consecutive month of reported purchases, while Poland's National Bank bought 52 tons and the Central Bank of Turkey added 48 tons. The Reserve Bank of India acquired 31 tons and the Monetary Authority of Singapore added 22 tons, with seven smaller sovereign buyers rounding out the total. Sales were limited to minor positions from Uzbekistan and Kazakhstan.
Dollar Weaponization Accelerates De-Dollarization
Analysts at Goldman Sachs, JPMorgan, and Bank of America attribute the sustained buying to concerns about dollar weaponization, U.S. fiscal sustainability, and the weaponized-sanctions framework applied against Russia and Iran. BRICS+ member central banks now hold an aggregate 8,412 tons of gold, up 42% over five years, versus flat-to-declining holdings among G7 central banks outside the U.S.
Goldman Sachs raised its year-end 2026 gold forecast to $3,500 from $3,200, with analyst Lina Thomas writing that "central-bank demand has become the dominant price driver" and may push gold to $3,800 if ETF flows accelerate in a Fed cutting cycle. JPMorgan's Natasha Kaneva sees $3,600 by mid-2027.
Gold ETFs See Renewed Inflows
Physical gold ETFs attracted $6.8 billion in inflows during Q1 2026, the strongest quarter since Q2 2020. SPDR Gold Shares (GLD) alone recorded $2.8 billion, while iShares Gold Trust (IAU) added $1.9 billion. The combined gold-backed ETF total tonnage has increased to 3,428 tons, though still 14% below its 2020 peak.
Silver rallied alongside gold, jumping 3.2% to $38.72 per ounce, a fresh 12-year high, while platinum hit a decade high of $1,278. Mining equities surged, with the VanEck Gold Miners ETF (