Poland's National Bank (NBP) purchased 82 tonnes of gold so far this year, taking advantage of recent price declines, Governor Adam Glapiński said at a press conference on Thursday. The central bank has been buying gold as prices fell nearly 30% from record highs in late January, with June posting an 11.74% monthly decline — the biggest since 2008. While speculators and retail investors have liquidated their gold holdings, central banks continue to view the current price action as a buying opportunity, with Poland emerging as one of the most active buyers in the gold market.
NBP Purchased 82 Tonnes of Gold This Year
Governor Adam Glapiński outlined the NBP's purchasing strategy at Thursday's press conference, stating: "We've been consistently buying gold, taking advantage of the recent price drops." Krishan Gopaul, Senior Analyst for EMEA at the World Gold Council, estimated that Poland bought about 19 tonnes of gold last month based on current reserve data. Glapiński emphasized the strategic rationale: "This isn't some kind of race or a purchase made merely for the sake of it. There is a deep sense in the state's role in ensuring the security of Poland and Poles under all circumstances, including wartime, which of course we're not expecting."
Gold Prices Fell Nearly 30% From January Record Highs
Gold has fallen nearly 30% from its record highs in late January. Last month, the precious metal posted its biggest monthly decline since 2008 during the Global Financial Crisis, dropping 11.74%. The Federal Reserve, with Kevin Warsh now at the helm, signaled that monetary policy could tighten further before the end of the year. Rising inflation pressures stemming from the global energy crisis, fueled by the war with Iran, have pushed real bond yields higher, increasing the opportunity cost of holding the non-yielding precious metal.
NBP Targets 700 Tonnes With 632.4 Tonnes Currently Held
Glapiński reaffirmed the NBP's goal of accumulating 700 tonnes of gold. The central bank currently holds 632.4 tonnes, with roughly 100 tonnes stored in Poland. The remainder of its reserves are held in London and New York, he said. Poland increased its gold reserves by more than 100 tonnes last year and is on pace to achieve a similar target this year, making it a clear leader among central banks in gold accumulation.
Central Bank Surveys Show 45% Plan to Increase Gold Holdings
Two major central bank surveys conducted last month underscored persistent support for gold over the next 12 months. According to the World Gold Council (WGC), a record 45% of central banks plan to increase their gold holdings over the next 12 months, while nearly 90% expect global official gold reserves to continue growing. The Official Monetary and Financial Institutions Forum (OMFIF) survey showed that more than 60% of reserve managers expect gold prices to trade between $5,000 and $6,000 an ounce over the next year. Analysts have said that persistent central bank demand appears to be creating a floor around $4,000 an ounce. Nawojka Wachowiak, Senior Portfolio Manager at Ninepoint Partners, told Kitco News: "If you have a buyer of that magnitude that steps in on pullbacks, you are going to find a floor."
FAQ
How much gold did Poland's central bank buy this year?
Poland's National Bank purchased 82 tonnes of gold so far this year, with an estimated 19 tonnes bought last month according to World Gold Council data.
What is Poland's central bank's gold reserve target?
The National Bank of Poland aims to accumulate 700 tonnes of gold. The central bank currently holds 632.4 tonnes, with roughly 100 tonnes stored in Poland and the remainder held in London and New York.
