Poland's central bank is buying gold as the metal sits nearly 30% below its January record, and it isn't alone. A World Gold Council survey shows most reserve managers plan to keep accumulating, and analysts see that steady demand building a price floor.
Poland's National Bank kept adding to its gold reserves through the recent selloff, buying 82 tonnes so far this year and roughly 19 tonnes last month, according to World Gold Council data. Governor Adam Glapiński framed the purchases as deliberate, saying the bank has consistently bought gold to take advantage of the recent price drops. The metal has fallen nearly 30% from its record high in late January.
The bank aims to reach 700 tonnes in total and currently holds 632.4 tonnes, having added more than 100 tonnes last year. It stores roughly 100 tonnes of that inside Poland. Glapiński tied the accumulation to the state's role in securing Poland under any circumstances, rather than to any race to buy.
Gold dropped 11.74% in June after the Federal Reserve signaled possible further monetary tightening, yet official buyers have not backed away. A World Gold Council survey found 45% of central banks plan to increase holdings over the next 12 months, while nearly 90% expect global official reserves to keep growing.
That persistent demand is why some analysts see a floor forming near $4,000 per ounce. Ninepoint Partners portfolio manager Nawojka Wachowiak told Kitco that buyers stepping in on pullbacks mean "you are going to find a floor". More than 60% of surveyed reserve managers expect gold to trade between $5,000 and $6,000 per ounce within a year.
Source: KITCO
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