Central banks, notably those of China and Poland, maintained their net gold buying activity in July, continuing to support structural demand for the precious metal. However, the pace of these purchases has slowed compared to last year, according to FX Street.
This ongoing demand highlights the strategic role gold plays in central bank reserves, even amid a more cautious approach. ING analysts including Warren Patterson and Ewa Manthey have noted this trend as a sign of persistent interest despite a less aggressive buying rhythm.
For Japanese investors, this steady central bank appetite for gold may influence safe-haven flows and impact FX and equity market dynamics, especially given Japan’s sensitivity to global reserve asset shifts.