[REVISION HISTORY]

Gold prices correct as central banks diversify reserves

Updated 16 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-09 09:05 UTC → 2026-09-10 13:53 UTC · added ~~removed~~

Gold prices faced a significant correction in early 2026, dropping approximately 25% to fall below $4,000 per ounce due to a firm Federal Reserve and rising bond yields. To stabilize yields, the U.S. Treasury announced plans to double its scheduled buyback operations of long-term debt between September 9 and November 4. Central bank activity remains a primary driver of market dynamics. Global central banks added approximately 289 tonnes of gold to reserves between April and June 2026, bringing total holdings to over 36,000 tonnes. The People's Bank of China (PBOC) has continued its streak of monthly accumulation, reaching a record ~~2,366~~ 2,387 tonnes. ~~However, recent data suggests significant unreported activity; China reportedly acquired over 40 tonnes via~~ In August, the ~~London Over-The-Counter (OTC) market in June alone, a volume 167% higher than~~ PBOC added 20.22 tonnes (approximately 650,000 troy ounces), its highest monthly purchase since early 2022, extending its continuous purchasing streak to 22 consecutive months. This brings China’s official ~~PBOC reports for that month.~~ reserves to a value of approximately $350.08 billion. To mitigate political and legal risks, central banks are increasingly diversifying storage locations. While London and New York remain hubs, institutions such as the central banks of France and the Netherlands are actively moving reserves out of New York to prioritize physical possession and reduce counterparty risk. Specifically, the Dutch central bank (DNB) moved 86 tons of gold from the United States and Canada to London between March and August 2026 to improve liquidity and crisis preparedness. This follows similar repatriation efforts by France and ~~Germany.~~ Germany, with Germany having previously moved over 216 tons from New York and Paris. In ~~Asia,~~ the ~~PBOC has extended its continuous~~ commodities market, gold ~~purchasing streak to 22 consecutive months. In August,~~ prices have recently tested the bank added 650,000 troy ounces, its highest monthly purchase since early 2022, bringing official reserves to approximately 2,386.6 tons valued at $350.08 billion. A survey of central bank officials indicates $4,400 level after retreating from a ~~broader trend toward de-dollarization, with 74 percent~~ high of ~~respondents forecasting a reduction in US dollar holdings within global reserves over~~ $4,520. Analysts are monitoring support zones between $4,340 and $4,355 to determine if the ~~next five years.~~ market maintains a bullish outlook.

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