Central Banks Resume Gold Buying in April After March Selloff

Central banks around the world returned to net gold purchases in April, reversing a significant selloff the previous month that had coincided with a sharp drop in bullion prices, the World Gold Council said in a report released on June 3.

Global central banks net purchased approximately 17 tonnes of gold in April, swinging from net sales of nearly 30 tonnes in March, according to WGC data. Poland remained the largest single buyer, China accelerated its purchases, and Turkey — the biggest seller in March — largely halted its disposals.

"Central banks officially returned to net gold buying in April, adding 17 tonnes for the month," said Marissa Salim, Senior Research Lead for Asia Pacific at the World Gold Council. "This represents a very strong V-shaped recovery compared to the sizeable net selling reported in March."

Poland Leads Buying, China Picks Up Pace

Poland's central bank remained the primary driver of global central bank gold purchases in April, acquiring a net 14 tonnes during the month. That brings Poland's year-to-date purchases to 45 tonnes, lifting its total gold reserves to 595 tonnes — approximately 30% of its total reserves.

China's central bank reported gold reserves of 74.64 million troy ounces (approximately 2,321.56 tonnes) at the end of April, up 260,000 troy ounces (roughly 8.09 tonnes) from 74.38 million troy ounces at end-March. The increase marked China's 18th consecutive month of gold additions. According to WGC monthly data, it was the second-largest monthly purchase in tonnes since China resumed buying in November 2024, trailing only the approximately 10 tonnes acquired in December 2024.

The Czech National Bank added a net 2 tonnes in April, a modest but continued increase that brought its total gold reserves to 79 tonnes, representing 6% of its total reserves.

Sellers Retreat as Turkey Stabilizes

On the selling side, Uzbekistan disposed of 1 tonne of gold in April, though the country remains a net buyer on a year-to-date basis with 24 tonnes accumulated — second only to Poland. Uzbekistan's gold reserves account for approximately 88% of its total reserves, at around 414 tonnes.

Russia's central bank extended its recent run of disposals, reporting net sales of 6 tonnes in April, marking its fourth consecutive month of net selling.

Turkey's central bank, which had been the largest seller in March, reported broadly flat gold reserves in April. Weekly data showed that its short-term gold/dollar swap contracts outstanding in April have since matured, with only longer-dated contracts of one to three months remaining outstanding.

Eastern Europe and Asia Dominate Structural Demand

Eastern European and Asian central banks continued to dominate global gold purchases, driven by sustained buying. Over the past 36 months, the two regions have averaged net purchases of 12 tonnes and 11 tonnes per month, respectively. Global central banks overall averaged net purchases of 29 tonnes per month over the same period.

Risks Remain Despite Recovery

Goldman Sachs noted that while April's rebound signals a return to solid central bank demand, the current pace of purchases represents only a fraction of last year's average.

The broader momentum that propelled gold prices above $5,000 last year has yet to reassert itself. The frenzied ETF inflows that characterized gold's surge phase have not returned; gold ETFs have in fact continued to see sustained outflows in recent months as momentum-driven capital has rotated into sectors such as semiconductors and memory chips.

That dynamic underscores how markets are currently more focused on near-term headwinds for gold than its structural tailwinds.

Rising U.S. Treasury yields and a stronger dollar — supported by the American economy's surprising resilience in the face of elevated oil prices — along with defensively positioned market participants, suggest gold's near-term outlook may remain challenged.