According to ING analysts Ewa Manthey and Warren Patterson, central banks have resumed strong gold buying in February, following a lull in January, as reported by monthly data from the World Gold Council [1]. Poland led net purchases, with continued accumulation by China, the Czech Republic, and other central banks [1]. The analysts note that this sustained official-sector demand, combined with elevated geopolitical uncertainty and ongoing concerns over reserve diversification, is expected to help underpin gold prices and limit downside risk during periods of market volatility, even as investor flows soften [1].
The trend of steady accumulation by central banks is highlighted as a key factor supporting gold, suggesting that official buying could act as a downside floor for prices [1]. ING emphasizes that this backdrop remains supportive for gold, particularly given the current environment of geopolitical uncertainty and reserve diversification needs [1].
No specific market reactions or forward-looking analyst opinions regarding price targets or future central bank actions are provided in the article [1].
CONCLUSION
Central banks' renewed gold buying, led by Poland and supported by China and the Czech Republic, is expected to provide a downside floor for gold prices amid softer investor flows and ongoing geopolitical uncertainty. ING analysts view this official-sector demand as a supportive factor for gold, helping to limit price declines during volatile periods.