After a major sell-off in March, global central banks resumed gold purchases in April, with the central banks of Poland and China being the largest buyers.

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After a large-scale sell-off in March, global central banks returned to the gold buying camp in April, but the overall pace of gold purchases remains far below last year’s level, and the outlook for gold prices is still under pressure.

According to the latest data from the World Gold Council (WGC), global central banks made a net purchase of about 17 tons of gold in April, reversing a net sale of nearly 30 tons in March, which was the largest single-month sell-off in recent years, mainly led by Turkey.

In April, the Polish central bank became the largest monthly buyer again with a net purchase of 14 tons, while the Chinese central bank accelerated its holdings by net buying 8 tons, reaching the highest single-month purchase since December 2024.

However, Goldman Sachs pointed out that although central bank gold buying is recovering, the current purchase level is still lower than last year. Meanwhile, the ETF funds that previously pushed gold prices above $5,000 continue to flow out, with momentum-seeking capital now shifting to chip and memory stocks. In addition, rising US bond yields and a stronger dollar, along with the US economy showing greater-than-expected resilience, are creating multiple obstacles for gold in the near term.

Central Bank Gold Buying Recovers, Poland and China Lead

WGC data shows that the Polish central bank purchased 14 tons of gold in April, totaling 45 tons so far this year, bringing its gold reserves to 595 tons—about 30% of its total reserves.

The Chinese central bank made a net purchase of 8 tons in April, bringing its official gold reserves to about 2,322 tons, about 9% of its total reserves. This marks the 18th consecutive month China has increased its gold holdings, continuing its consistent buying trend.

The Czech central bank also maintained a steady pace, net buying about 2 tons in April, marking its 38th consecutive month of increase. Its gold reserves rose to 79 tons, accounting for 6% of total reserves.

Eastern European and Asian central banks continue to dominate the global gold buying landscape. WGC data shows that over the past 36 months, these two regions have averaged monthly purchases of 12 tons and 11 tons respectively, while global central banks have averaged a net purchase of 29 tons per month.

Turkey Stabilizes, Russia Continues to Reduce Holdings

Turkey, the largest seller in March, saw almost no change in its gold reserves in April. WGC explains that weekly data show Turkey’s previously matured short-term gold/dollar swap contracts were settled in April, with only longer-term (1 to 3 months) gold/dollar swaps remaining unsettled.

The Russian central bank continued its reduction trend, netselling 6 tons of gold in April, marking the fourth consecutive month of net selling. So far this year, it has sold a total of 22 tons.

The central bank of Uzbekistan made a slight net sale of 1 ton in April, but remains a net buyer so far this year with a total of 24 tons purchased, second only to Poland globally. Uzbekistan’s gold reserves are about 414 tons, accounting for 88% of its total reserves.

Slower Gold Buying Pace; Absence of ETF Funds Puts Pressure on Gold Prices

Although central bank gold purchases are back on track, the market remains cautious regarding gold's short-term outlook. Goldman Sachs points out that the current level of purchasing is noticeably weaker compared to last year's momentum, and the ETF positions that contributed to last year’s strong gold price rise are still decreasing, with liquidity pursuing momentum now moving toward technology sectors like chips and memory.

Meanwhile, the US economy is showing unexpected resilience amid high oil prices, US bond yields and the dollar continue to strengthen, and market positions remain passive, making gold's upward path face obvious challenges. WGC data shows that the market is currently more focused on gold’s near-term resistance rather than its long-term structural support.

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