Following a significant sell-off in March, global central banks returned to the gold market as net buyers in April, although the overall pace of purchases remains well below last year's level, keeping pressure on gold price prospects.
According to the latest data from the World Gold Council (WGC), global central banks were net purchasers of approximately 17 tonnes of gold in April, reversing the net sale of nearly 30 tonnes seen in March, which was the largest monthly sell-off in recent years and was primarily led by Turkey.
In April, the National Bank of Poland was the largest monthly buyer once again, with a net purchase of 14 tonnes. The People's Bank of China accelerated its accumulation, adding a net 8 tonnes, marking its highest monthly purchase since December 2024.
However, Goldman Sachs notes that despite the recovery in central bank buying, the current level of purchases remains below that of last year. Concurrently, ETF funds—which previously drove gold prices above $5,000—continue to see outflows, with momentum-chasing capital having shifted to areas like chip and memory stocks. Furthermore, rising U.S. Treasury yields and a strengthening U.S. dollar, coupled with the U.S. economy demonstrating unexpected resilience, present multiple near-term headwinds for gold.
Resumption of Central Bank Purchases Led by Poland and China
WGC data reveals that the Polish central bank purchased 14 tonnes of gold in April, bringing its year-to-date total accumulation to 45 tonnes. Its gold reserves now stand at 595 tonnes, representing about 30% of its total reserves.
The Chinese central bank added a net 8 tonnes in April, raising its official gold reserves to approximately 2,322 tonnes, which constitutes about 9% of its total reserves. This marks the 18th consecutive month of gold purchases by China, continuing its established trend of consistent accumulation.
The Czech National Bank also maintained a steady pace, purchasing a net 2 tonnes in April. This represents its 38th consecutive month of net additions, bringing its gold reserves to 79 tonnes, or 6% of its total reserves.
Central banks in Eastern Europe and Asia continue to dominate the global gold purchasing landscape. WGC data shows that over the past 36 months, these two regions have averaged monthly purchases of 12 tonnes and 11 tonnes, respectively. The global central bank average for net monthly purchases over the same period was 29 tonnes.
Turkey Stabilizes, Russia Continues to Reduce Holdings
Turkey, the largest seller in March, saw its gold reserves remain nearly unchanged in April. The WGC explains that weekly data indicates the short-term gold/U.S. dollar swap contracts that had previously matured in Turkey were settled in April. Only longer-term (1 to 3 months) gold/U.S. dollar swap contracts now remain outstanding.
The Central Bank of Russia continued its selling trend, disposing of a net 6 tonnes of gold in April. This marks its fourth consecutive month of net sales, with year-to-date disposals totaling 22 tonnes.
The Central Bank of Uzbekistan sold a net 1 tonne in April. Nevertheless, it remains a net buyer for the year so far, with cumulative purchases of 24 tonnes, making it the world's second-largest buyer this year after Poland. Uzbekistan's gold reserves are approximately 414 tonnes, accounting for a significant 88% of its total reserves.
Slower Purchasing Pace and Absent ETF Flows Weigh on Gold Price
Despite central banks resuming their net purchases, market sentiment towards gold's near-term outlook remains cautious. Goldman Sachs points out that the current scale of central bank buying is notably weaker compared to last year's robust momentum. Meanwhile, ETF holdings, which were a major driver of last year's gold price surge, are still in decline, as liquidity chasing momentum has flowed into technology sectors such as semiconductors and memory.
At the same time, the U.S. economy is showing unexpected resilience in a high oil price environment, while U.S. Treasury yields and the dollar continue to strengthen. Market positioning also remains defensive, creating clear challenges for gold's upward trajectory. WGC data suggests the market is currently more focused on gold's near-term headwinds rather than its long-term structural support thesis.
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