Central Banks Buy 41 Tonnes of Gold in May as Bitcoin ETFs Lose $8.9B

DATA & FIGURES

Central banks purchased 41 tonnes of gold in May, with Poland adding 18 tonnes, China adding 10 tonnes, and Uzbekistan adding 9 tonnes. Bitcoin ETFs lost $8.9 billion in May and June, with the price of Bitcoin falling to a 21-month low near $58,000 in late June. Gold now accounts for a larger share of global central bank reserves than US Treasuries for the first time since 1996.

THE SCENARIO

The global economy is seeing a shift in reserve assets, with central banks increasingly turning to gold as a hedge against inflation and sanctions risk. The World Gold Council's 2026 survey found that 89% of central bankers expect global gold reserves to rise over the next 12 months, and a record 45% plan to increase their own holdings.

DIRECT QUOTE

"The digital gold thesis assumes both assets attract the same patient, price-insensitive capital. May's data shows they do not, yet." — Dr. Guneet Kaur, Author

BBN INSIGHT

The Positive Side: Central banks' continued purchase of gold highlights the metal's appeal as a reserve asset, providing a hedge against inflation and sanctions risk. The Negative Side: Bitcoin ETFs' significant outflows and the lack of a sovereign buyer base for Bitcoin raise concerns about the cryptocurrency's ability to attract price-insensitive capital. The divergence between gold and Bitcoin highlights the differing institutional convictions and the need for investors to carefully consider their investments in each asset.

MARKET REACTION

The price of gold rose 0.54% to $4,148.10, while the price of Bitcoin fell 1.05% to $62,099.25.