Central Banks Hoard Gold, Bitcoin Faces Hard-Money Challenge
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Central banks are continuing to amass gold at one of the fastest paces in recent years, even as prices remain at historically high levels.
MissedBlock Desk · 3 min read
Central banks are continuing to amass gold at one of the fastest paces in recent years, even as prices remain at historically high levels. This trend, which extended beyond the third quarter of 2026, underscores the persistent preference of sovereign institutions for the traditional safe-haven asset when diversifying their reserves.
Gold Acquisitions Surge in Q3 2026
Data compiled by analysts at The Kobeissi Letter reveals that global central banks acquired 321 tonnes of gold in the third quarter of 2026. This marks the largest quarterly purchase in nearly two years and ranks as the fifth-largest on record. The acquisitions represent an 8% increase from the 296 tonnes bought in the second quarter and a significant jump from just 58 tonnes in the first quarter. For context, the five-year quarterly average for central bank gold purchases stands at approximately 227 tonnes. Year-to-date demand reached 675 tonnes, a 6% increase compared to the same period in 2025.
Key Buyers and Continued Momentum
China and Poland emerged as the most significant buyers, adding 63 tonnes and 40 tonnes of gold, respectively. Kazakhstan and Uzbekistan each purchased an additional 14 tonnes, while the Czech Republic continued its sustained accumulation strategy.
The buying spree did not cease at the end of September. Further reports indicated that the People’s Bank of China acquired another 25.8 tonnes in October, its largest monthly purchase in three years. Poland also bought 27 tonnes that month, bringing its gold reserves to its previously stated target of 700 tonnes. Polish central bank Governor Adam Glapinski has indicated no intention to halt further accumulation of the precious metal.
Motivations and ETF Demand
The World Gold Council attributes central banks’ continued interest in gold to reserve diversification and risk management strategies. Concurrently, demand for gold Exchange Traded Funds (ETFs) saw a robust rebound in the third quarter, adding 211 tonnes.
Gold Outperforms Bitcoin
The current market dynamics become particularly noteworthy when gold’s performance is measured against bitcoin, rather than the U.S. dollar. The XAU/BTC ratio has climbed from approximately 0.047 in early October to nearly 0.057, a surge of roughly 20%. This indicates that an ounce of gold now commands considerably more bitcoin than it did just over a month ago.
This divergence highlights a sharp contrast between the two assets often considered “hard money.” Bitcoin experienced significant volatility, trading above $80,000 for much of October before undergoing a sharp correction to $65,000. While gold has also seen some decline against the dollar, closing Friday around $3,900 per ounce, its losses have been substantially less severe than bitcoin’s.
The comparison does not necessarily diminish bitcoin’s long-term scarcity narrative. Central banks operate under distinct constraints compared to private investors, and gold benefits from centuries of established history supporting its value proposition.
Bitcoin has faced headwinds from deleveraging, ETF outflows, and broader risk-off sentiment. In contrast, central banks have been actively increasing their holdings of gold, its oldest and arguably closest rival. Current market charts suggest that the traditional safe-haven asset is currently outperforming bitcoin.