• Net purchases totalled 33t in April, rebounding from a revised net 3t in March
• Broad buying from several emerging market banks offset negligible sales
• June sees the release of findings from our Central Bank Gold Survey 2024.

The rapid rise in the gold price during March raised  several questions. One of these was whether central banks – whose demand has been posited as a key reason for the recent rally – would change their gold buying behaviour in response.

We now have the benefit of a more complete picture for March, as well as initial data for April, to help inform our perspective. Latest figures – reported via the IMF and publicly available sources – show that global gold reserves rose by a net 33t in April, similar to levels seen in February (27t).¹ Although gross purchases dipped to 36t, from 39t in March, gross sales saw a more pronounced m/m drop from 36t to just 3t in April.   

Central bank net buying rebounds in April

Monthly central bank gross purchases and sales, tonnes*

*Data to 30 April 2024 where available.
Source: IMF IFS, respective central banks, World Gold Council

Eight central banks increased their gold reserves by a tonne or more in April. The Central Bank of Turkey was the largest buyer, increasing its official reserves by 8t.² With 11 consecutive months of buying, the bank’s y-t-d net purchases now total 38t and lift its total official gold holdings to 578t. The National Bank of Kazakhstan (6t), Reserve Bank of India (6t), National Bank of Poland (5t), Monetary Authority of Singapore (4t), Central Bank of Russia (3t) and Czech National Bank (2t) were the other major buyers in the month.

The People's Bank of China reported a significant slowdown in its gold buying. The bank reported that its gold reserves rose by just under 2t in April to 2,264t – the lowest monthly  increase since it resumed reporting in November 2022 and well below the 18t monthly average prior to April.

Notable gross sales were limited to the Central Banks of Uzbekistan and Jordan. Both reported a 1t decline in their gold reserves, a notable reduction in the pace of selling seen in February and March.

Central bank gold demand remains healthy so far in 2024

Y-t-d net purchases/sales of a tonne or more by central bank*

*Data to 30 April 2024 where available.
Source: IMF IFS, respective central banks, World Gold Council

Looking back at March, net purchases for the month have been revised to just 3t following the late reporting of a 12t sale by the Central Bank of the Philippines.  While gross purchases during March were relatively stable in the face of the rapidly rising gold price, gross sales saw a marked pick-up thanks to heavy sales from (now) four banks . This suggests that price performance may well have had some impact on the activity of some central banks.

Despite the slowdown in March, the preliminary pick-up in net purchases in April   may suggest that central banks have thus far shaken off the rally in the gold price and continue with their strategic buying plans. Of course, more data for April, as it becomes available, as well as data for May, will be instructive to further assess how central banks’ approach to gold purchases will evolve. In addition, June sees the publication of findings from our Central Bank Gold Survey 2024, which will provide a rich insight into central banks’ thinking towards gold, and how this may influence gold buying going forward.

Footnotes

¹ Based on monthly IMF IFS data (reported with a two-month lag) and supplemented with data from respective central banks where applicable. Most institutions report on a regular basis, but some may report with a – sometimes significant – delay. Late availability of data may lead to revisions. The data reported here informs, but is distinct from, the central bank demand estimates we report in Gold Demand Trends.

² Turkey’s official sector gold reserves are the sum of central bank-owned gold and Treasury gold holdings. This is equivalent to gross gold reserves less all gold held at the central bank in relation to commercial sector gold policies (such as the Reserve Option Mechanism (ROM), collateral, deposits and swaps). For information on this methodology, click here.

Central bank gold demand strengthened in July despite price rise

• Reported net purchases by central banks more than doubled to 37t in July
• The National Bank of Poland was the leading buyer in the month, followed by the Central Bank of Uzbekistan and the Reserve Bank of India (RBI)
• We expect central bank demand for gold to continue in the coming months.

Central banks have shown an ongoing commitment to accumulating gold in recent months. While the overall level of reported demand has cooled as the gold price has continued to rally to new record highs, it has nonetheless remained positive. This commitment continued in July, as global central banks are reported – via the IMF and publicly available data – to have added a net 37t to official reserves. This represents a 206% m/m increase and the highest monthly total since January (45t).

Central bank gold demand picked up in July
Monthly central bank gold demand in tonnes*

*Data as of 31 July 2024 where available.
Source: IMF IFS, respective central banks, World Gold Council

At a country level, activity was limited to those who have been buyers and sellers of late. In total, seven central banks added gold (of a tonne or more) to their reserves in July, while only one central bank reduced its gold holdings.

• The National Bank of Poland was the largest buyer, adding a net 14t, its largest monthly increase since November 2023. This purchase lifted its gold holdings to 392t, or 15% of total reserves. Poland has been on a gold buying spree since April, accumulating 33 tonnes over the last four months
• The Central Bank of Uzbekistan bought 10 tonnes in the month – the second consecutive month of buying – bringing its gold holdings to 375t. July’s purchase has flipped the Central Bank of Uzbekistan from a net seller to a net buyer on a y-t-d basis (+3t)
• Estimates based on weekly data suggest that the Reserve Bank of India’s gold reserves rose by 5t in July, meaning the RBI has now added gold every month so far this year. Y-t-d net purchases of gold total 43t, and have lifted its gold holdings to 846 tonnes
• Central Bank of Jordan (CBJ) gold reserves rose by over 4t in July - the third consecutive month of net purchases. On a y-t-d basis, CBJ gold reserves are now up a net 3 tonnes to 74 tonnes
• Data from the Central Bank of Turkey shows that its official (central bank plus Treasury) gold reserves rose by 4t – with 14 consecutive months of net buying. Its official gold reserves amount to a new record high of 589t, eclipsing the previous record of 587t, set in February 2023
• The Qatar Central Bank lifted gold reserves by 2t. This increases its y-t-d net purchases to 8t, and total gold holdings to 109t
• The Czech National Bank (CNB) increased gold reserves by 2t during the month, lifting its total to 43t. The CNB has now added to its gold reserves for 17 consecutive months, with net purchases totalling over 31t during this period
• Based on available data at the time of publication, the Central Bank of Kazakhstan was the only net seller in July. Its gold reserves fell by 4t, reducing its gold holdings to 295t or 55% of total reserves.

One other noteworthy change relates to the State Oil Fund of Azerbaijan (SOFAZ) – the only sovereign wealth fund in our data set.¹ Second quarter results show that its gold holdings rose by 10 tonnes between April and June, representing the biggest quarterly increase in gold holdings since Q2'19 (+23.7 tonnes). Total gold holdings at the end of Q2'24 were 114.9 tonnes, 13t higher than at the end of 2023.

Gold buying continues to heavily outweigh sales this year
Y-t-d central bank gold purchases/sales in tonnes*

*Data as of 31 July 2024 where available.
Source: IMF IFS, respective central banks, World Gold Council

While the gold price rally is very likely having some impact on central bank gold demand this year, the longstanding trend of net buying remains intact. This reinforces the findings from our latest central bank survey, which highlights several reasons (such as gold’s role as a store of value and its performance in times of crisis) why, despite the elevated price, central banks are still keen to accumulate gold. Based on these findings, we continue to be confident in our expectation that more buying is to come.
 

Footnotes

¹Currently, SOFAZ is the sole sovereign wealth fund in our data set as it is the only one we are aware of which publicly discloses its gold holdings.

• Central banks reported net purchases of 8t in August – the lowest since March¹
• The National Bank of Poland was the leading buyer in the month, followed by the Central Bank of the Republic of Turkey and the Reserve Bank of India (RBI)
• The Central Bank of Kazakhstan reduced its gold holdings by 5t in August.

Central banks have continued to accumulate gold in August with reported net purchases of 8t. While overall demand has tapered from the early 2024 highs, accumulation of gold reserves remains positive, with activity concentrated in emerging market (EM) central banks. August net purchases were the lowest since March when central banks reported a net sale of 2t; it was also well below the 12-month average of 33t.

On a y-t-d basis EM central banks account for 70% of total reported net purchases with Turkey making up 25% of overall central bank buying thus far.

Central bank demand eases in August*

*Data to 27 September 2024 where available. Chart includes only purchases/sales of 0.5t or more as reported directly by central banks or via the IMF.
Source: IMF IFS, respective central banks, World Gold Council

At a country level, just four central banks added net gold (of a tonne or more) to their reserves in August.

• The National Bank of Poland was the largest buyer, adding a net 6t and lifting its gold holdings to 398t. Poland has continued its net purchase trajectory over the past five months, adding 39t over this period
• The Central Bank of the Republic of Turkey added 3t to its gold reserves in August, its fifteenth consecutive month of net purchases. On a y-t-d basis Turkey is the largest net purchaser, adding 52t of gold or about 35% of its total reserves
• The Reserve Bank of India accumulated 3t of gold, its eighth consecutive month of net buying. This makes the RBI the second highest net purchaser of gold on a y-t-d basis, with net purchases of 45t
• The Czech National Bank (CNB) added 2t of gold in August, its eighteenth consecutive month of net buying. The CNB has accumulated 33t of gold over this period, lifting its total gold reserves to 45t
• The Central Bank of Kazakhstan reduced its gold reserves by 5t in the month. This fourth consecutive month of net sales brings its gold holdings to 290t or about 55% of total reserves. Kazakhstan is now a net seller y-t-d, with gold holdings reduced by 5t.

Y-t-d central bank net purchases and sales*

*Data to 27 September 2024 where available. Chart includes only purchases/sales of 0.5t or more as reported directly by central banks or via the IMF.
Source: IMF IFS, respective central banks, World Gold Council

Reported central bank activity in August was markedly slower. While gold’s price performance is not a top strategic driver for central banks purchase, its consistent upward trend could have influenced the deceleration. However, it is worth noting that sales have not increased which may signal a likely wait and see approach rather than a change in trend. Specially, since all other key drivers of central bank decision making, such as the need for effective diversifiers and gold’s performance in time of risk remain in place. In all, our expectation remains positive for the rest of the year but, as we previously discussed, will likely be below last year’s total.

Stay tuned for our upcoming Q3 Gold Demand Trends, scheduled at the end of October, which combines a more comprehensive set of data to estimate central bank activity.

Footnotes

¹Our monthly report is limited to direct central bank reports and data provided to the IMF.

*Data to September 2024 where available. Totals may not sum due to rounding. Excludes the State Oil Fund of Azerbaijan (SOFAZ), which only reports quarterly data. Note: By country and y-t-d charts include changes of a tonne or more only.
Source: IMF IFS, respective central banks, World Gold Council

Published 4 December 2024, updated 17 December 2024.

Central bank gold buying ramps up in October

Turkey, India and Poland lead net buying y-t-d

• Central banks reported 47t of net purchases this month – the highest amount recorded y-t-d¹
• The Central Bank of Turkey led the field, adding 17t of gold to its reserves, followed by India and Poland – 14t and 8t respectively
• The National Bank of Kazakhstan recorded its first monthly net buying (4t) after five consecutive months of reducing gold holdings
• Based on currently available IMF data, reported net sales were negligible this month.

The October tally almost doubled that of the 12-month average with the Central Bank of Turkey leading both y-t-d purchases and those reported during the month. Turky added 17t in October, bringing its total gold purchases to 72t y-t-d. Emerging market central banks continued to dominate the market with Poland and India adding 68t and 64t y-t-d to their gold reserves respectively. These three central banks alone account for 70% of total global net purchases reported this year.

Highest monthly net buying for 2024 recorded in October

Monthly reported central bank activity, tonnes*

Other than Turkey, several central banks reported net increases (of a tonne or more) to their gold reserves in October. 

• The Reserve Bank of India added 14t – the highest reported monthly figure since October 2021. On a y-t-d basis India has added 64t, representing a four-fold increase on its 2023 activity.
• The National Bank of Poland recorded net buying of 8t during the month, its seventh consecutive month of net buying. On a y-t-d basis, Poland added 69t, making up 17% of its total reserves. The NBP's annual report² highlights its commitment to accumulating gold, with the central bank targeting a 20% allocation as a percentage of its total official reserve assets 
• The National Bank of Kazakhstan added 5t of gold to its reserves after five months of net selling. However, Kazakhstan remains a net seller y-t-d, down 4t in 2024
• The Czech National Bank (CNB) added 2t of gold, making October its 20th consecutive month of net buying. The CNB has accumulated 37t of gold over this period, lifting its total gold reserves to 49t
• Kyrgyzstan added 2t of gold to its reserves, bringing its y-t-d purchases close to 6t and making October the highest reported monthly net buying on record since September 2023
• Data made available by the Bank of Ghana shows that its gold reserves now amount to 28t. The country’s gold reserves have increased steadily since May 2023, when they stood at just under 9t. Ghana added a further 1t during the month.

Y-t-d central bank net purchases and sales*

Central bank demand remains robust, with y-t-d (reported and unreported) buying reaching 694t by Q3 2024 – comparable to levels seen in 2022. While rising gold prices appear to have inhibited some buying and prompted tactical sales over recent months, October's rebound in reported activity signals continued interest from central banks to accumulate gold within their reserve portfolios. This reaffirms the role gold plays as a strategic asset for central banks to manage risks and diversify reserves.

Footnotes

¹Based on reported monthly data from the International Monetary Fund (IMF). This blog was updated on 17 December 2024 to reflect the correct increase in Reserve Bank of India gold reserves (in tonnage terms) in November and year-to-date.

²Narodowy Bank Polski Annual Report 2023.