Central banks bought a net 41 tonne of gold in May, with Poland, China, Uzbekistan and Kazakhstan making significant purchases in the month.
“Central banks were back in buying mode in May – and with a little more spring in their step. … purchases once again concentrated among a familiar cast of buyers,” said Marissa Salim, Senior Research Lead, APAC of the World Gold Council (WGC).
Poland purchased 18 tonne, China 10 tonne, Uzbekistan 9 tonne and Kazakhstan 7 tonne. Singapore rejoined the list of buyers, reporting a net purchase of 4 tonnes, its first monthly net purchase since September 2025.
Year-to-date, Poland has purchased 64 tonne of gold, followed by Uzbekistan and China at 33 tonne and 25 tonne, respectively. Kazakhstan has accumulated 20 tonne year-to-date.
Turkey, Russian selling spree continues
Turkey sold 3 tonne and Russia 6 tonne, continuing their sell-off spree witnessed since the Iran war broke out on February 28. Year-to-date, Turkey has sold 81 tonne and Russia 34 tonne.
The Central Bank of Republic of Turkey’s sales of gold are policy-driven and tactical to manage the balance of payment rather than a shift in its strategy. The bank sells gold for forex operations to defend its currency, lira, and for gold-for-currency swap futures to secure immediate liquidity
Russian sales are to manage budget deficits and soaring military expenditures. Moscow has been drawing down its war chest to manage domestic spending and convert assets into currencies like the Chinese yuan.
Poland has also said it would sell gold for managing defence expenditures. However, for the fourth month in a row, it purchased the yellow metal. It was a three-month high. Poland now holds 614 tonne of gold in its reserves, inching closer to its 700-tonne target, said Salim.
China’s buying 20th month in a row
The People’s Bank of China continued to be a net purchaser for the 20th consecutive month. The 10 tonne purchased in May was its highest 17 months. China has added 25 tonne to gold reserves and is one of the top three accumulators of the precious metal this year.
“China’s official gold reserves now stand at 9 per cent of total reserves or around 2,331 tonne” said the WGC senior research lead.
Singapore, with its latest purchase, has increased its gold holdings to 197 tonne. The Monetary Authority of Singapore is looking to establish central bank gold vaulting services from October 2026, in line with the country’s plans to establish a gold hub in the city state.
Among other buyers were the Czech National Bank and the Central Bank of Jordan, which bought 2 tonne and 1 tonne, respectively. The Czech bank has been a net gold buyer for 39 months now.
March an exception
Barring March, central banks across the world have been buying gold. Their purchases of the yellow metal was one of the reasons for the dazzling rally since January 2024, which peaked on January 29 this year at $5,608 an ounce.
Since then, the precious metal has been heading lower, dropping to below $4,000 an ounce earlier this week. On Friday, gold was quoted at $4,165 an ounce at 1930 hours IST. Gold has lost over 3.5 per cent this year and shed 25 per cent since it peaked on January 29.
A rising dollar, fears of inflation, increasing bond yields and pessimism over global economic growth have dragged gold from its peak. Expectations of the US Fed increasing interest rates have also impacted the precious metal.