FILE PHOTO: Gold bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth/File Photo
| Photo Credit:
ANGELIKA WARMUTH
After having been net sellers of gold in March, central banks turned net buyers of the precious metal in April, led by Poland and China, data from the World Gold Council (WGC).showed.
“Central banks resumed net gold purchases in April, having bought 17 tonnes. This was a rebound from the sizable net sales reported in March,” said Marissa Salim, Senior Research Lead, Asia Pacific (APAC), WGC.
However, the pace of accumulation of the yellow metal slowed in April.
According to Salim, Poland was the top buyer in the month, purchasing 14 tonnes. China intensified buying to a 16-month high at 8 tonnes of net purchase). It extended Beijing’s current buying run to 18 consecutive months.
Czech consistency
The Czech Republic showed similar consistency in purchases, buying 3 tonnes in April – its 38th consecutive monthly purchase. However, Russia continued its sales streak this month. It sold 6 tonnes. With this, it has sold 22 tonnes since January this year.
The WGC data showed that the National Bank of Poland has purchased 45 tonnes since the beginning of the year. Its gold reserves are currently at 595 tonnes, making up about 30 per cent of its total reserves.
In March, Polish President Karol Nawrocki and central bank governor Adam Glapiński said they would use gold reserves to finance military expenditure. However, its finance minister Andrezej Domanski has ruled out such a move.
In China, official gold reserves now stand at 9 per cent of total reserves or around 2,322 tonnes. China has been consistently purchasing gold and has been one of the factors pushing up the prices of the yellow metal.
Uzbekistan sells
The Czech National Bank’s modest but consistent purchases had led its gold reserves to rise to 79 tonnes or 6 per cent of its total reserves.
The WGC said Eastern European and Asian central banks continued to dominate gold purchases with consistent purchases. Over the past 36 months, both regions have purchased 12 tonnes and 11 tonnes per month, respectively, on average. Global central banks activity shows average net purchases of 29 tonnes over the same period.
On the other hand, the Central Bank of Uzbekistan sold one tonne in April. However, it is a net purchaser year-to-date (24 tonnes). It is second only to Poland. Uzbekistan’s reserves make up 88 per cnt of its total reserves or around 414 tonnes.
The Central Bank of Russia, on the other hand, has been selling gold since the beginning of the year.
The Central Bank of the Republic of Turkey, which was the top seller of gold in March, reported its gold reserves flat in April. Weekly data showed that short-term gold/dollar swaps matured in April, leaving only longer-term (1-3 month) gold/dollar swaps outstanding.
Iran war ends rally
The Turkish central bank sold gold in March to defend its currency, which dropped sharply against the dollar, and also for liquidity purposes. Overall, it has sold close to 80 tonnes so far this year.
Besides Russia and Turkey, other countries that have sold gold are Azerbaijan, and Kazakhstan.
Gold owes its glittering rally from 2024 to January 2026 to purchases by the Central banks. Besides them, the precious metal soared due to hopes of rate cut by the US Fed, geopolitical crisis, trade disputes between the US and others, particularly China. These developments saw gold emerge as a strategic investment asset.
However, the outbreak of the Iran war has seen a total change in the outlook for gold. The yellow metal, which soared to a high of $5,608 an ounce on January 29, has lost over 20 per cent since then. On Wednesday, it was quoted at $4,430 at 1915 hours IST.
The Iran war has stoked fears of inflation, a fall in the global economic growth, particularly due to crude oil prices soaring to $100 a barrel. Investors have also switched over to the crude oil complex from gold with the surge in the fossil fuel prices.
Published on June 3, 2026
