Buying Against the Trend Amid Gold Price Plunge! Poland Central Bank Has Increased Holdings by 82 Tons This Year, Targeting a Reserve Goal of 700 Tons

Adam Glapinski, Governor of the National Bank of Poland, stated at a news conference in Warsaw on Thursday that gold’s position in global central bank reserves is rising and is regarded as a key asset for ensuring financial security and stability.

He also reiterated that the National Bank of Poland aims to increase its gold reserves to 700 tons. Currently, the bank holds 632.4 tons of gold, with 105 tons stored in Poland, and the remainder held in London and New York.

So far this year, the National Bank of Poland has purchased 82 tons of gold.

Glapinski said: “We have been continuously buying gold, taking advantage of the recent price declines.”

This also means that since the last official data release in April, the National Bank of Poland has added another 37 tons of gold. At current prices, this newly acquired gold is valued at approximately $5 billion.

In recent months, the National Bank of Poland has bought billions of dollars’ worth of gold during price pullbacks. Since April, gold prices have declined by more than 10%.

These purchases occurred as investors boosted expectations for rising US interest rates and a stronger dollar. Higher US interest rates and a stronger dollar typically exert negative pressure on gold prices.

Poland’s reported gold purchases in 2025 surpassed those of any other central bank worldwide. Based on the current situation, the country appears likely to once again top the list of central bank gold buyers this year.

Glapinski emphasized that Poland’s increasing gold holdings are not for ranking purposes. He stated: “This isn't some kind of contest, nor are we buying just for the sake of buying. There are profound considerations behind this — the country has a responsibility to ensure the security of Poland and the Polish people under any circumstances, including in times of war, though of course we do not expect that situation.”

Despite the second quarter being the worst in over a decade for gold performance, the latest quarterly gold outlook report by Invesco suggests that central bank demand will help gold end the year on a positive note.

Invesco’s report notes that such a retracement “is not uncommon during periods of sustained strong rallies in any market, and given that gold prices are still up 21.3% over the past 12 months, this latest price adjustment could be healthy.”

However, they warned that gold prices still face downside risks. “The coming months could be critical for gold, and we will closely watch how the Federal Reserve responds to inflation — whether inflation remains elevated or subsides as oil prices decline — and whether the dollar will continue to strengthen against other major currencies.” They stated, “Higher interest rates and a stronger dollar are typically unfavorable for gold, as the former increases the opportunity cost of holding a non-yielding asset, while the latter makes gold more expensive for international (non-US) investors.”

“We believe most of the structural support for gold remains fundamentally intact,” the report authors stated. “Central banks appear likely to continue purchasing gold to diversify reserves. The World Gold Council reports that among central bank governors surveyed in their latest poll, 45% expect to increase gold reserves in the next 12 months, a record high, while 89% anticipate global central bank gold holdings will rise over the next year.”

They pointed out that this structural support is reflected in their recent global sovereign asset management research, “in which most central banks reported increasing gold allocations over the past three years. Concerns over global volatility, inflation hedging, and geopolitical uncertainty are now the main drivers behind continued gold purchases.”