Central Banks Buying Around 1,000 Tonnes Annually

Speaking at the Rising Bharat Summit 2026, David Tait, Chief Executive Officer of the World Gold Council, said central banks have collectively purchased about 1,000 tonnes of gold each year over the last three years.

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Tait stated that geopolitical uncertainty remains a key factor supporting gold prices. He added that concerns over sovereign debt sustainability have become a persistent driver of the rally. According to him, episodes such as sharp movements in U.S. bond yields following tariff-related announcements reflect stress linked to government financing concerns rather than inflation alone.

He said central banks in developing economies, including India, are continuing to build gold reserves and remain behind Western central banks in terms of gold allocation. He added that central banks increasingly treat gold as a long-term reserve asset rather than actively rebalancing holdings even after price increases.

India Demand At 711 Tonnes In 2025

Citing demand data, Tait said global gold demand reached record levels last year. In India, total gold demand stood at about 711 tonnes in 2025.

He stated that jewellery demand in India declined due to higher prices, while investment demand for bars and coins rose 17% year-on-year in 2025. The increase in investment demand reflects investor interest in physical gold amid financial market uncertainty, according to his remarks at the summit.

Tait said cultural factors continue to support baseline gold demand in India. He added that future growth in demand is likely to increasingly involve institutional participation, including pension funds and insurance companies, as gold becomes part of diversified portfolios.

Debt Concerns Central To Rally

Tait said concerns over rising public debt levels are a recurring theme in the current gold rally. He stated that a scenario involving a sharp acceleration in U.S. economic growth to around 6–7% with moderate inflation, which could help reduce public debt ratios, would be required to materially weaken gold prices. He described the probability of such an outcome as very low.

The comments were in line with what was said at the Rising Bharat Summit 2026. Moreover, it said that geopolitical trends, debt sustainability, and central bank accumulation are what are driving the current gold price action.