On August 5, 2026, the World Gold Council released its latest report showing that as of the end of July 2026, total global central bank gold reserves reached 38,120 tonnes, a new all-time high. Net purchases by central banks worldwide in the second quarter (April-June) amounted to 220 tonnes, a 15% increase from Q1. This data reaffirms gold's core status as a global reserve asset and injects strong momentum into the gold market barometer.
Core Drivers Behind Central Bank Gold Purchases
The report indicates that total central bank gold purchases in the first half of 2026 reached 410 tonnes, with China, India, Turkey, Poland, and Vietnam as the main buyers. Notably, the State Bank of Vietnam increased its holdings by 12 tonnes in Q2, raising total reserves to 1,050 tonnes and lifting its share of foreign exchange reserves from 6.8% at end-2025 to 8.2%.
José Canal, Research Director at the World Gold Council, stated: "The fundamental reasons for central bank gold accumulation are heightened geopolitical uncertainty, challenges to the US dollar credit system, and gold's function as a store of value in a prolonged inflationary environment. With global debt levels currently elevated, central banks' demand for gold allocation will continue to rise."
Strong Medium-to-Long-Term Support for Gold Prices
At press time, international gold prices stood at $5,148 per ounce, up 22.3% year-to-date. Analysts believe sustained central bank buying provides a solid floor for gold prices. Nguyen Van Thanh, Vice President of the Vietnam Gold Traders Association, noted: "Central bank gold purchases send a strong market signal that gold remains one of the world's safest assets. This will provide long-term support for gold prices, which are expected to challenge the $5,500 mark by end-2026."
Analysis of Key Factors for Gold Price Trends
- Fed Policy Expectations: Markets widely expect the Fed to cut rates by 25 basis points in September; declining real interest rates will enhance gold's appeal.
- Geopolitical Risks: The ongoing Russia-Ukraine conflict and tensions in the Middle East keep safe-haven demand elevated.
- Weakening US Dollar Index: The DXY fell from 105 at the start of the year to 101.2, supporting gold prices.
- Inflation Expectations: Inflation rates in major global economies remain above central bank targets, driving strong demand for value preservation.
Vietnam's Local Gold Market Dynamics
Buoyed by rising international gold prices and news of central bank purchases, Vietnam's SJC gold bar price was quoted at VND 92.5 million per tael today, up VND 350,000 from the previous session. DOJI Jewelry Group's gold price also rose to VND 92.3 million per tael. Tran Van Cuong, a gold shop owner in Hanoi, said: "The number of customers inquiring about and buying gold has noticeably increased over the past two days, with many shifting a portion of their allocations from stocks and real estate into gold."
The State Bank of Vietnam stated it will continue to flexibly adjust gold import quotas based on market conditions to maintain a reasonable price differential between domestic and international gold. Currently, Vietnam's gold price carries a premium of about 2.5% over the international price, within the normal range.
How Investors Can Leverage the Gold Market Barometer
For Vietnamese investors, central bank gold purchases signal a medium-to-long-term bullish outlook. Here are three practical recommendations:
- Scale into Positions: With gold prices near historical highs, consider dollar-cost averaging or phased buying strategies to avoid chasing the market with a single large position.
- Monitor the Gold-Silver Ratio: The current ratio is around 86:1, near a five-year high. If you anticipate silver catching up, consider allocating some to silver.
- Choose Formal Channels: Prioritize buying gold bars from branded stores like SJC, DOJI, or banks, and avoid trading through informal channels.
Industry Outlook
The World Gold Council expects total global central bank gold purchases to exceed 900 tonnes in 2026, surpassing the 800-tonne mark for the third consecutive year. Meanwhile, global gold ETF holdings reached a record 3,850 tonnes in July, showing sustained enthusiasm for gold allocation among institutional investors.
The Vietnam Gold Traders Association believes that with increased volatility in the VND exchange rate and rising domestic inflationary pressures, Vietnamese citizens' demand for gold as a store of value will continue to grow. Vietnam's gold imports are expected to exceed 80 tonnes in 2026, a near-decade high.
The gold market barometer is clear: driven jointly by global central banks and institutional investors, gold's status as a core reserve asset is becoming increasingly solid. For Vietnamese investors, allocating 10%-15% of their portfolio to gold may be one of the most prudent choices in the current environment.
