Central bank gold purchases moderated in April as gold prices hit new record levels, though buying activity remained robust compared to historical trends.
April Purchases Slow, But Trend Remains Positive
According to the latest data from the World Gold Council (WGC), central banks added a net 12 tonnes of gold to their reserves in April. This represents a 12% decrease from March and is below the 12-month average of 28 tonnes. Despite this slowdown, the total volume of gold added is still significant, especially considering the context of soaring gold prices.
In April, gold prices reached an all-time high of $3,500 per ounce, prompting some central banks to temper their purchases. The WGC noted that the slowdown in central bank buying may partly be attributed to the rapid appreciation of gold prices since the start of the year. However, central banks typically take a more strategic approach to gold accumulation, and the rally in prices is unlikely to significantly deter their long-term buying trends.
“While the rally to multiple record highs is unlikely to deter central banks from buying gold—due to their strategic nature—this could explain some deceleration in monthly net buying,” the WGC explained.
Additionally, a large decrease in Uzbekistan’s reserves also played a role in lowering overall purchases.
Key Insights on Central Bank Buying
The WGC cautioned against reading too much into the April slowdown, emphasizing the volatile nature of the data. Monthly fluctuations do not necessarily signal long-term trends, and in many cases, data can be released with a significant lag. While higher gold prices may push central banks closer to their gold allocation targets, the overall geopolitical and economic outlook remains highly uncertain, which is expected to sustain demand for gold.
Poland Leads Gold Purchases
Poland emerged as the largest buyer in April, adding 12 tonnes to its reserves. This brings the National Bank of Poland’s (NBP) total gold holdings to 509 tonnes, surpassing those of the European Central Bank (ECB). Since the beginning of 2024, Poland has increased its gold reserves by 61 tonnes, following a record purchase of 90 tonnes last year.
Poland’s central bank has been vocal about its plans to continue increasing its gold holdings, with NBP Governor Adam Glapiński stating that the country aims to boost its gold reserves to 20% of its total assets. Poland’s consistent gold buying enhances its credibility on the global stage, further solidifying its position as a serious economic partner.
Other Notable Buyers
Several other central banks also reported gold additions in April, including:
Czech National Bank: 3 tonnes
People’s Bank of China (PBoC): 2 tonnes, marking its sixth consecutive month of gold purchases, increasing its official reserves to 2,294 tonnes (approximately 6.5% of its total reserves). The PBoC is also suspected of holding significantly more gold than it publicly discloses, with reports suggesting the country may possess over 5,000 tonnes.
Turkey: 2 tonnes
Kyrgyz Republic: 2 tonnes
Kazakhstan: 1 tonne
Jordan: 1 tonne
While these additions are noteworthy, Uzbekistan reported a decrease of 11 tonnes, likely driven by a shift in buying and selling patterns typical of countries that purchase gold from domestic production.
Central Bank Gold Purchases in Context
In 2024, central banks collectively increased their gold reserves by 1,044.6 tonnes, marking the 15th consecutive year of gold reserve growth. This expansion ranked as the third-largest on record, only trailing 2023 and 2022, when central banks collectively added 1,136 tonnes—the highest level ever recorded.
This 16-year trend of consistent gold purchases underscores the ongoing de-dollarization and diversification of central bank portfolios. The WGC anticipates that this trend will continue, driven by elevated geopolitical risks, uncertainty surrounding U.S. assets, and ongoing global trade tensions.
The WGC also pointed out that central banks are increasingly reducing their exposure to U.S. assets as part of a broader diversification strategy, which aligns with the trend of de-dollarization. As geopolitical tensions persist, the demand for gold is expected to remain strong, unless a major shift occurs in the global economic landscape.
Outlook for Central Bank Gold Buying
The WGC’s analysts expect central bank gold buying to remain near the levels seen over the past few years, especially considering trade-related risks and ongoing economic uncertainty. As long as these factors persist, the demand for gold as a safe-haven asset will continue to drive central bank purchases.
“In the absence of a major shift in geopolitical tensions, we don’t see an end to this trend. The IMF has downgraded growth prospects for the U.S. more than for other major economies, citing policy uncertainty, which suggests that other countries may gain leverage in economic negotiations.”
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