Central banks’ appetite for gold grows and could favor new investments in Latin American projects

Global central banks have resumed accelerating gold purchases to rebuild their reserves, strengthening the outlook for new investments in metal-related projects in Latin America.

Central banks recorded net purchases of 289 tons of gold in the second quarter, an increase of 62% compared to the 177 tons recorded in the same period of 2025, according to the  Gold Demand Trends – Q2 2026 report by the World Gold Council.

“The positive result in the second quarter was driven by the continued gold purchases by Poland and China, as well as additional acquisitions by other already known buyers”, said the World Gold Council in its report.

“The broader geopolitical scenario, together with lower gold prices, likely contributed to the increase in purchases in the second quarter. In the face of persistent global uncertainty and continued interest in diversifying international reserves, these factors likely helped sustain central banks’ appetite for gold,” the entity highlighted.

In the second quarter, the National Bank of Poland was the largest buyer, adding 51 tons to its stock and raising its gold reserves to 632 tons at the end of June. As a result, Poland’s purchases in the first half reached 82 tons, reinforcing its position as the main gold buyer so far this year and bringing the country closer to its target of 700 tons in reserves.

The People’s Bank of China (PBoC), in turn, added another 33 tons of gold in the second quarter, its largest quarterly purchase since the fourth quarter of 2023, when it bought 44 tons. The cumulative increase of 40 tons in the first half raised the institution’s official gold reserves to 2,346 tons.

Although China’s monthly pace of purchases remains moderate compared with previous periods of strong accumulation, the continuity of these acquisitions reinforces the strategic nature of the Chinese program to strengthen its gold reserves.

Despite the positive results in the second quarter, net demand from central banks in the first half of 2026 totaled 345 tons, the lowest volume recorded for a first half since 2022, when 241 tons were recorded.

“The broader message from activity in the first half of the year is one of continued, though uneven, demand for gold from central banks. It is worth highlighting that central banks’ sentiment toward gold remains exceptionally strong. This is evidenced by the results of the most recent Central Bank Gold Reserves Survey, in which 89% of respondents expected global reserves to increase in the coming year, while a record 45% expected to raise their own reserves over the same period. Central bank demand is expected to remain above its long‑term historical average,” said the World Gold Council.

Amid rising global geopolitical uncertainties and, despite price volatility, gold has once again consolidated in recent years as a strategic instrument for diversifying and protecting the international reserves of several countries.

This scenario has favored the advancement of gold projects in Latin America, a segment historically marked by cycles of volatility, but which has once again attracted investments in light of the appreciation of the metal.

BNamericas highlighted some of the main recent initiatives in the sector in Latin America.

Brazil

Amapá Minerals Holdings Inc., a Canada-listed company, recently raised around US$100 million through an initial public offering (IPO) of shares, as part of its plan to restart and develop its gold project in Brazil.

The company sold 127.272.728 common shares at a price of US$1.10 per share, raising 140 million Canadian dollars (approximately US$100 million).

The transaction may be increased by approximately US$15 million, considering the over-allotment option granted to the underwriters for the purchase of additional shares.

A Amapá Minerals is a gold mining company whose main asset is located in the Guiana Shield, a region of great mineral significance in northern Brazil.

The project consists of an open-pit gold operation that has already been in production and that has historically sold more than 1.5 million ounces of gold between 2005 and 2021.

The Brazilian gold market has attracted new investments.

According to projections by the Brazilian Mining Institute (Ibram), an entity that represents companies in the mineral sector in the country, investments in gold projects in Brazil are expected to reach US$2.46 billion between 2025 and 2030, an increase of 14.7% compared to the investment cycle planned for the period from 2025 to 2029.

The Brazilian mining sector recorded revenues of 150.7 billion reais (US$30 billion) in the first half of this year, an increase of 8.2% compared to the same period in 2025.

The growth was driven mainly by the gold and copper segments. Gold revenue rose 44.2%, to 25.3 billion reais, while copper revenue increased 41%, reaching 20.6 billion reais.

“Despite short-term fluctuations, demand for copper will continue to grow in the long term, since the metal is essential for the electrification of the economy. At the same time, there is a constraint on the supply of new projects. In the case of gold, we see central banks in various parts of the world increasing their interest in the metal as a way to strengthen their international reserves”, said Pablo Cesário, CEO of Ibram.

Chile

In Chile, Kinross is preparing a new phase of expansion of its presence in gold and silver mining in the country, with a strategy aimed at extending its operations beyond 2040.

The plan is focused mainly on expanding the La Coipa operation and on developing the Lobo-Marte project, whose initial investment estimate reaches US$1.8 billion.

The Lobo-Marte project, currently in the licensing, detailed engineering, and execution planning phase, is progressing on schedule as part of Kinross’s district strategy to leverage its proximity of approximately 50 kilometers to La Coipa, in the Atacama Region.

With the aim of increasing production and reducing operating costs, the Canadian mining company is also moving forward in Chile with the project to extend the useful life of La Coipa and Rajo Purén, which involves estimated investments of US$113 million, in addition to the Maricunga initiative, whose gold production is planned for the next decade.

Argentina

Recently,  AbraSilver increased the economic value, the resource and reserve base, and the expansion potential of its silver and gold project Diablillos in Argentina.

The project has an initial capex estimated at US$772 million, according to a final feasibility study released by the company.

The Canadian company is moving toward the construction phase, with production expected to start in 2029, while the final investment decision is scheduled for the second quarter of 2027.

AbraSilver already has the necessary environmental approvals, including the license for construction of the project located between the provinces of Salta and Catamarca.

Argentina and Peru

Fortuna Mining plans to increase production at its Linder gold mine in Argentina to a range between 92 thousand and 102 thousand ounces of gold, while advancing exploration activities at the Arizaro project, also in the country.

At the same time, the company is working on expanding the tailings storage facility at its Caylloma polymetallic mine in Peru.

The Canadian company plans to invest US$71 million in the two countries during 2026, with the aim of continuing to expand its presence in Latin America and strengthening its operations in the precious metals segment, which also includes operations in Africa.

Mexico

 Equinox Gold and Orla Mining have completed the merger of their operations, giving rise to a new gold producer in North America, with estimated annual production of 1.1 million ounces of gold.

The combined company projects a growth trajectory that could lead it to exceed 1.9 million ounces per year as its projects advance. The transaction, announced in May with an implied market capitalization of US$18.5 billion, was formally completed on July 31.

The path to achieving annual production of 1.9 million ounces depends, in part, on the resumption of the Los Filos project, located in Guerrero, Mexico. The asset has remained suspended for an indefinite period since April 2025, after the expiration of the land access agreement between Equinox Gold and the Carrizalillo community.

The government of Guerrero took part in the negotiations to facilitate dialogue between the company and the communities, considering that the conflict had kept investments estimated at US$340 million paralyzed and caused the loss of approximately 800 direct jobs.

In June, Equinox Gold signed 20-year land access agreements with the three communities that host the mine – Carrizalillo, Mezcala, and Xochipala – allowing the company to prepare for the gradual resumption of heap leaching operations and to evaluate a possible expansion of the project.

Meanwhile, in July, First Majestic Silver significantly increased its capital investment program for 2026 and revised its production forecast upward, after posting operational performance above expectations at its mines in Mexico.

The expansion projects in Santa Elena, Los Gatos, San Dimas, and La Encantada are part of the company’s growth strategy.

The Canadian mining company has raised its capital budget for 2026 to a range between US$318 million and US$344 million, an increase of 47% compared to the initial forecast of US$213 million to US$236 million.

At the same time, it increased its consolidated attributable production guidance to 14.6 million to 15.5 million silver equivalent ounces (Moz), an improvement of 10% compared to the previous estimate.

The forecast for gold production was also raised to a range between 128 thousand and 135 thousand ounces, an increase of 7% compared to the initial projection.

Torex Gold, headquartered in Toronto, has presented a development path for its gold and silver project Los Reyes, also in Mexico, by releasing its first preliminary economic assessment (PEA) since acquiring the asset through the purchase of Prime Mining at the end of 2025.

The study confirmed the project as one of the company’s main growth platforms in addition to its producing complex, Morelos Complex. The PEA estimates an initial capital investment (capex) of US$515 million for the development of the project.

(The original version of this content was written in Portuguese)