17:37 - 29.01.2026

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January 29, Fineko/abc.az. Last year, central banks unexpectedly reduced their gold purchases by 20%.

ABC.AZ. informs that this happened amid a sharp increase in investment demand and indicates that funds and individual investors have already played a major role in the record rise in bullion prices.

According to the World Gold Council (WGC), gold purchases by central banks and other official institutions (including sovereign wealth funds and government agencies) fell by 863.3 tons last year. This decrease is explained by the weakening interest of the formal sector in additional purchases due to high prices and an increase in the cost of existing stocks.

At the same time, investment demand for gold increased by 84% compared to the previous year and reached 2,175 tons. The growth is mainly linked with the flow of funds directed to exchange-traded funds (ETFs) backed by gold and physical gold bars.

Last year, the price of gold grew more than by 60%, and this year it has already increased by more than 20%, exceeding $5,300 per ounce. The increase came amid tensions over Greenland and Iran, as well as concerns about rising government debt.