Global Trends in Central Bank Gold Demand

 

Global central banks have been net buyers of gold for years, with 15 consecutive years of buying and record demand in 2024–2025. In 2024 they added ~1,045 tonnes to reserves, and Q4’24 alone saw 333t of purchases (up 54% YoY). Buying remained strong into 2025: Q1’25 net purchases were 244t (about 21% below Q1’24 but still well above long-term norms). For example, Jan’25 saw +18t (led by Uzbekistan +8t, China +5t, Kazakhstan +4t), and Feb’25 +24t (Poland +29t, China +5t, Turkey +3t, Jordan +3t, Qatar +2t, Czech +2t). Analysts note much of this surge is driven by diversification away from U.S. dollar assets amid geopolitical risks.

• Record 2024 total: Central banks bought ~1,045t in 2024 (third year above 1,000t).Q4’24 purchases alone were 333t
• Early 2025: Q1’25 net purchases were 244t. Monthly data: Jan’25: +18t; Feb’25: +24t.
• Emerging markets lead: Buying has been concentrated in emerging economies. For instance, by Feb’25 Poland, China, Turkey and others were the top net buyers.
• Dollar-diversification: Experts say central banks are using gold to diversify reserves away from U.S. assets, given U.S. policy uncertainty.

Major Central Bank Purchases

• Poland (NBP): The National Bank of Poland has been the world’s largest gold buyer. It added ~49t in Q1’25 (including 29t in Feb’25), raising its reserves to ~497t (≈21% of its reserves). Poland added 90t in 2024, and its 11-month buying streak continued into early 2025.

• China (PBoC): The People’s Bank of China resumed buying in Nov’24 after a hiatus. It added a further ~13t in Q1’25 (5t in Jan and 5t in Feb), lifting reported reserves to ~2,292t (≈6–6.5% of its reserves).

• India (RBI): The Reserve Bank of India continues to accumulate gold. It added 3t in Q1’25. RBI’s holdings reached ~880t by end-Mar 2025 (about 12% of total reserves), up from ~822t a year earlier. (FY2025 purchases totaled ~58t, the second-largest annual acquisition on record.

• Turkey (CBRT): The Central Bank of Turkey added 3t in Feb’25 (and ~4t in Q1’25), bringing its gold reserves to 623t (≈38% of total reserves). Turkey has steadily bought gold to diversify its large reserves.

• Kazakhstan (NBK): The National Bank of Kazakhstan added 6t in Q1’25 (reserves ~291t), but was a net seller in Feb (–8t). NBK Deputy Governor Aliya Moldabekova said in Apr 2025 the bank will “hold off on gold sales until uncertainty declines”, underscoring a strategic approach to gold accumulation.

• Other EMs: Several other emerging-market central banks also bought gold recently. Czech Republic’s central bank added +5t in Q1’25 (reserves ~56t). The Azerbaijani sovereign fund (SOFAZ) added +19t (to 165t) in Q1’25. Jordan’s central bank bought +3t in Feb’25 (reserves 72t) and Qatar +2t (114t), reflecting continued regional buying.

Central Bank Gold Sales

• Uzbekistan: After being a top buyer, the Central Bank of Uzbekistan net-sold 15t in Q1’25 (including –12t in Feb’25). Uzbekistan’s reserves are unusually gold-heavy (≈82% gold), so it may rebalance by occasional sales.

• Kazakhstan: Although NBK added gold overall in early 2025, it was a net seller in Feb’25 (–8t). Gold still accounts for ~54% of Kazakhstan’s reserves.

• Russia (CBR): The Central Bank of Russia reported a small sale of 3t in Q1’25. (Russian banks had been largely buyers since 2022.)

• Kyrgyz Republic: The Kyrgyz central bank sold 2t in Q1’25.

• Others: Aside from the above, selling has been very limited. Most central banks either held steady or continued minor net buying. Overall, official sector sales in early 2025 were modest and tactical

Policy Statements & Context

• Kazakhstan: NBK’s Deputy Governor said in April 2025 that the bank would delay further gold sales “until uncertainty declines and prices stabilise”, signaling a strategic shift to accumulate and hold gold amid volatility.

• Belgium: In March 2025 the National Bank of Belgium (NBB) issued a press release rejecting media speculation about selling gold. The NBB reaffirmed that its gold reserves are allocated to “public interest tasks” (e.g. finance for defense) and will not be monetized for budgetary purposes.

• Central bank officials: At industry conferences, leaders from central banks (e.g. Czech Republic, Mongolia) have emphasized gold’s role as a reserve diversifier and safe-haven asset. For example, Czech and Mongolian delegates noted that maintaining gold in reserves “still matters” and increases portfolio resilience.

• Market analysts: Observers point out that many central banks are using the gold rally to hedge against currency and geopolitical risks. Surveys by the World Gold Council indicate a majority of central bankers plan to expand their gold allocations as part of reserve diversification (e.g. citing waning appeal of U.S. Treasuries).

Sours - gold.org