Central Banks
30 April, 2025
- Central banks’ net purchases totalled 244t in Q11
- The National Bank of Poland accelerated its gold buying
- Similar to previous quarters, sale volumes remained modest.
| Tonnes | Q1'24 | Q1'25 | Year-on-year % change |
|
|
Central banks and other institutions |
309.9 | 243.7 | -21 |
|
Central banks’ impressive demand for gold continued in Q1 as a further 244t was added to global official reserves. While this demand was markedly lower than the previous quarter, in absolute terms it was still healthy at 24% above the five-year quarterly average, and just 9% below the average seen over the last three years of very elevated demand.
Uncertainty, which leapt during the quarter and helped propel the gold price to record highs, likely reinforced central banks’ interest in gold. Gold as a store of value and its performance during times of crisis were highlighted as key reasons for holding gold in our 2024 Central Bank Gold Survey, and the turbulent events in Q1 played to its strengths. This, in turn, provided further support for gold’s rally.
Both buying and selling in the quarter remained concentrated among those emerging market central banks that have shown recent activity.2
- The National Bank of Poland, the leading buyer last year, was once again at the forefront of gold acquisitions and at an accelerated pace. The bank added a further 49t during the quarter, representing 54% of its total gold demand last year (90t). This lifts its total gold holdings to 497t (21% of its total reserves)
- The People’s Bank of China reported adding 13t to its gold reserves in Q1. As a result, reported gold reserves climbed to 2,292t by the end of the quarter, nudging gold’s share of total reserves to 6.5%
- The National Bank of Kazakhstan added 6t during the quarter, lifting its official gold reserves to 291t. In early April, National Bank of Kazakhstan Deputy Governor, Aliya Moldabekova, told Bloomberg that the bank would hold off on gold sales until uncertainty declines and prices stabilise
- The Czech National Bank’s gold reserves rose by 5t in Q1. The bank’s steady accumulation in recent years lifted gold holdings to 56t by the end of Q1, over four times higher than at the end of 2021
- The Reserve Bank of India (RBI) added 3t in Q1. Buying has been less consistent in recent months than it was in 2024, when the RBI bought gold every month except December. Its gold holdings stood at 880t at the end of March, accounting for 12% of total reserve
- The Central Bank of Turkey3 was again a significant buyer in the quarter, adding 4t based on available data at the time of publication
- There was also continued interest from Middle Eastern central banks, with Qatar (3t), and Egypt (1t) both increasing their gold reserves in Q1
- The State Oil Fund of Azerbaijan (SOFAZ), the country’s sovereign wealth fund, increased its gold reserves by 19t over the quarter, to 165 tonnes. Gold now accounts for 26% of SOFAZ's portfolio
- Sales during the quarter were modest and limited to the Central Bank of Russia (3t) and the CIS central banks of Uzbekistan (15t) and the Kyrgyz Republic (2t).
Akin to recent quarters, reported purchases only accounted for 22% of central bank demand in Q1, implying widespread buying interest beyond what was captured by the IMF IFS data. This may be explained by a number of factors, including delays to reporting and purchasing by non-central bank official institutions.
There is also anecdotal evidence that central bank lending increased during the quarter as the supply of gold was squeezed.4 Lending rates leapt in response to the rush of gold into COMEX amid uncertainty around the new US Administration’s tariff policy, although they normalised before the end of the quarter. As lending activity represents a movement of gold rather than a change in ownership, it is not included in our demand estimates.
Further, the turmoil in Q1 also led to renewed interest in the topic of gold storage by central banks.5 Although there have been calls for repatriation of gold from the US as confidence fell, some central banks have dismissed any change in their storage policies.6
The overall buying trend is now entering its sixteenth year, fresh off the back of colossal buying in the last three years.7 But what’s next for central bank gold demand? We anticipate that heightened levels of uncertainty will maintain gold’s role as a valuable component of international reserves going forward, and this will support demand in the near term. See our Outlook section for more information.
Footnotes
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Central bank demand presented here comprises aggregate reported changes as well as an estimate for unreported buying. This differs from our monthly central bank statistics, which consist solely of reported changes.
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Country-level data is based on reported figures available at the time of writing. Revisions may occur as more data is released.
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Turkey data for December 2024 was delayed at time of publication.
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Annual central bank demand for 2024 has been revised up to 1,086t from 1,045t as more data became available.
