Central banks globally added a net 483 tons of gold through the first six months of the year, 5 percent above the record of 460 tons in H1 2023.

In the second quarter, central bank gold demand totaled 183 tons, according to the latest data compiled by the World Gold Council. That was up 6 percent year-on-year, but about 39 percent lower than the Q1 buying pace.

With gold at or near record price levels in most currencies, it's unsurprising that central bank buying slowed in the second quarter.

China primarily drove the Q2 slowdown in central bank demand. The People's Bank of China reported no additions to its gold reserves in May or June and only officially added 2 tons in April.

Prior to the pause in May, China had increased its gold holding for 18 straight months.

Many analysts believed the Chinese paused officially adding gold to their reserves in an effort to push gold prices lower.

When the Chinese reported no changes to their official reserves in May, it precipitated a panicked gold selloff. Despite the kneejerk reaction, it seems unlikely that the Chinese are finished adding gold to their reserves. There is also some speculation that China is adding a significant amount of gold to its reserves off the books.

Even with the pause, China still added nearly 30 tons of gold to its reserves through the first half of 2024.