In April 2025, global central banks purchased a net 12 tonnes of gold, marking a 12% decrease compared to March and well below the 12-month average of 28 tonnes, according to the latest data. While central banks are still adding to their reserves, this slowdown could be partly attributed to the rapid appreciation in gold prices since the beginning of the year. Despite the price rally reaching record highs, central banks tend to be strategic in their gold purchases, and this slowdown is not expected to halt overall buying trends.
Chart 1: Slower Net Purchases by Central Banks in April
As shown in the chart, monthly gold purchase data can be highly volatile, meaning fluctuations in one month may not indicate a sustained trend. Additionally, there is often a delay in the release of data, which warrants caution when interpreting these short-term changes. While higher gold prices may have pushed some central bank portfolios closer to their gold allocation targets, we expect the overall demand for gold to continue, driven by ongoing economic and geopolitical uncertainty.
Poland Leads Gold Purchases
The National Bank of Poland (NBP) remains the largest buyer of gold. In April, the NBP added 12 tonnes to its reserves, bringing its total holdings to 509 tonnes—surpassing the European Central Bank’s reserves of 507 tonnes. Since the beginning of 2025, Poland has increased its gold reserves by 61 tonnes, contributing significantly to the 90 tonnes it added in 2024.
Other central banks have also made notable purchases. The Czech National Bank increased its gold holdings by 3 tonnes in April, continuing its streak of 26 consecutive months of adding gold, bringing its total to nearly 59 tonnes. The People’s Bank of China added 2 tonnes to its reserves, marking its sixth consecutive month of purchases, with total reserves now at 2,294 tonnes. Turkey’s Central Bank also added 2 tonnes, bringing its reserves to 626 tonnes, while Kazakhstan and Kyrgyzstan reported smaller additions of 1 tonne each.
Chart 2: Central Bank Gold Accumulation in 2025
On a year-to-date basis, gold purchases by central banks continue to be widespread, with emerging market countries making up the majority of the buying activity. This trend contrasts with sales, which remain less frequent and largely dominated by a single country, the Central Bank of Uzbekistan, which sold 11 tonnes of gold in April—continuing a trend of monthly sales.
Reserve Bank of India’s Gold Reserves and Storage Update
In April, the Reserve Bank of India (RBI) maintained its gold reserves at 880 tonnes but provided an update on the location of its holdings. According to its half-yearly report, 512 tonnes (58%) of its reserves were held domestically at the end of March 2025. This represents a slight increase in absolute terms from the 510 tonnes held domestically six months earlier, although the domestic share has declined from 60% in the previous period. Over the past two years, the RBI has made significant efforts to increase the proportion of its gold reserves held within India, up from just 38% in 2023.
African Banks Eyeing Gold Reserves
Several African central banks have also announced plans to bolster their gold reserves. In early May, the Bank of Namibia revealed plans to accumulate gold to reach 3% of its total reserves, aligning with global central banking trends as part of its strategy to hedge against inflation and enhance economic resilience during periods of financial uncertainty. According to the latest IMF data (March 2019), the Bank of Namibia held no gold reserves at that time.
The National Bank of Rwanda also expressed interest in adding gold to its reserves. Governor Soraya Hakuziyaremye stated that the central bank is conducting a study to determine if gold could serve as a valuable asset to counter external shocks and financial market volatility. The central bank plans to begin accumulating gold starting in the new fiscal year, beginning July 2025.
In Uganda, the Bank of Uganda announced plans to diversify its reserves with gold sourced from artisanal miners. Governor Michael Atingi-Ego emphasized that this gold accumulation would help the bank manage maturing cross-currency repos.
Meanwhile, the Central Bank of Madagascar revealed plans to acquire 4 tonnes of gold to strengthen its reserves and formalize gold exports. The Central Bank of Kenya is also reportedly considering adding gold to its reserves, although no specific timeline has been given for when this might happen.
Conclusion
While central bank gold purchases slowed in April, the overall trend of accumulating gold remains intact, with many countries, especially emerging markets, continuing to diversify their reserves. The slowdown in buying activity is likely a temporary response to the rise in gold prices, and with continued economic and geopolitical risks, demand for gold is expected to remain strong throughout 2025.
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