Central banks across the world bought 12 tonnes of gold net in April based on reported data. It was 12 per cent lower than the net purchases in March and below the 12-month average of 28 tonnes, the World Gold Council (WGC) said on Tuesday.
The lower purchase may, in part, be a response to the rapid appreciation in the gold price since the start of the year. “While the rally to multiple new record highs is unlikely to deter central banks from buying gold – as they tend to be more strategic in nature – it could explain some of the deceleration in the pace of monthly net buying,” said Krishan Gopaul, WGC Senior Analyst of the Europe, Middle East and Africa region.
RBI reserves unchanged
Gold reserves with the Reserve Bank of India (RBI) were unchanged at 880 tonnes in April. However, 512 tonnes of this is stored within the country, which is two tonnes higher than six months ago.
“The RBI has made significant efforts in recent years to store a higher proportion of its gold reserves domestically – just two years ago it reported that only 38 per cent of its gold reserves were held in India,” said Gopaul.
The WGC said the central banks’ activity in one month may not necessarily be an indication of activity in subsequent months. “What’s more, data can be released with, at times, a significant lag. As such, we caution against reading too much into this recent slowdown in reported purchases,” the council’s senior analyst said.
Higher prices may have pushed up gold allocations in some central bank portfolios, possibly closer to targets, but the WGC expects overall buying of the metal by them would continue. This is given the fact that the economic and geopolitical outlook remains highly uncertain.
Poland largest buyer
The National Bank of Poland continued to be the largest buyer of gold. In April, it purchased 12 tonnes, increasing its reserves to 509 tonnes. It is higher than the 507 tonnes held by the European Central Bank. Since the start of the year, gold reserves with the National Bank of Poland have increased by 61 tonnes, two-thirds of the 90 tonnes it added in 2024.
The Czech National Bank increased its gold reserves by a further three tonnes in April. It has now added gold for 26 consecutive months, over which time it has bought a total of 47 tonnes. Its total gold holdings were nearly 59 tonnes at the end of April.
People’s Bank of China’s gold reserves increased by two tonnes in April — the sixth consecutive month of purchases. Net purchases in 2025 until April were 15 tonnes.
The Central Bank of Turkey (Turkiye) upped its reserve by two tonnes (626 tonnes total), and the National Bank of Kyrgyz Republic’s gold reserves also increased by a similar margin. It was, however, its first monthly net purchase in four months. For the year, it has sold a net of two tonnes and its net holdings are 37 tonnes.
Broad-based buys
Gopaul said gold buying by central banks continues to be broad-based. But it is confined to emerging markets, dominated by the National Bank of Poland. In comparison, sales are less widespread, but similarly dominated by a single bank.
On the other hand, African banks plan to boost gold reserves, with the Bank of Namibia announcing it would accumulate gold to three per cent of its total reserves. The National Bank of Rwanda and the Bank of Uganda also plan to diversify their reserves with gold.