Georgia’s latest purchase is a small but illustrative example of a much larger global trend, with central banks buying over 970 tons of gold in the first quarter alone, close to 80% of all 2025 purchases. This demand has shown low price sensitivity, reinforcing a structural floor under gold prices regardless of near term moves. With Ukraine, Middle East tensions and the ongoing US-Iran conflict feeding a persistent risk premium, gold’s safe haven appeal looks set to remain elevated, likely limiting downside even during periods of broader risk appetite while amplifying gains during acute escalation phases.
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Georgia’s central bank bought another $100mn in gold, lifting reserves to a record $7bn, as global central banks bought 970 tons in Q1 alone.
Summary:
- The National Bank of Georgia purchased an additional $100mn worth of LBMA standard gold bars for its international reserves, lifting the share of monetary gold in reserves to 15.5% and pushing total reserves to a record $7.0bn, equivalent to 114.8% of the IMF’s reserve adequacy metric
- Central banks worldwide purchased over 970 tons of gold in the first quarter of 2026 alone, representing approximately 80% of total 2025 acquisitions of 1,235 tons, with annual purchases exceeding 1,000 tons for four consecutive years from 2022 to 2025
- Central bank gold demand exhibits low price sensitivity, which mainly supports the stability of the gold price floor
- The conflict in Ukraine, escalating Middle East tensions, US-China trade frictions and the US-Iran conflict that began in February 2026 have collectively reinforced a structural risk premium in gold pricing, elevating its enduring value as a safe haven asset
The National Bank of Georgia has purchased an additional $100mn worth of highest purity gold bars for its international reserves, lifting the share of monetary gold in its reserves to 15.5% and pushing total reserves to a record $7.0bn, equivalent to 114.8% of the IMF’s reserve adequacy benchmark.
The move is part of Georgia’s broader reserve diversification strategy, but it also reflects a much larger global pattern. Central banks worldwide purchased over 970 tons of gold in the first quarter of 2026 alone, representing roughly 80% of total acquisitions across all of 2025, which itself totalled 1,235 tons. Aggregate annual central bank gold purchases have now exceeded 1,000 tons for four consecutive years, from 2022 through 2025.
A defining feature of this demand is its low sensitivity to price. Central banks have continued accumulating gold regardless of where prices stand, a dynamic that primarily supports and stabilises a price floor for the metal rather than amplifying short term swings.
Underpinning this sustained buying is a broader set of geopolitical pressures. The ongoing conflict in Ukraine, escalating tensions across the Middle East, persistent US-China trade frictions, and the US-Iran conflict that began in February 2026 have together reinforced a structural risk premium embedded in gold pricing, cementing its role as an enduring safe haven asset for reserve managers navigating an increasingly fractured global landscape.
This article was written by Eamonn Sheridan at investinglive.com.
