For the first time in ten months, central banks became net sellers of gold in March, as reported by the World Gold Council (WGC).
Leading the sales were Turkey and Russia, which collectively sold a net total of nearly 30 tonnes of gold, surpassing purchases from other global banks, according to Marissa Salim, Senior Research Lead for the Asia Pacific region at WGC. Turkey alone sold 60 tonnes, while Russia sold 6 tonnes during March. Additionally, data from the State Oil Fund of Azerbaijan indicated net sales of 22 tonnes in the first quarter.
In contrast, the National Bank of Poland emerged as the largest buyer, acquiring 11 tonnes of gold. Poland has been steadily increasing its gold reserves over the past few years, becoming a consistent net purchaser for more than three years. The bank has accelerated its buying pace significantly in the last 12 to 18 months, positioning itself as the world’s leading central bank buyer of gold.
The People’s Bank of China continued its pattern of gold purchases for the 17th consecutive month, acquiring 5 tonnes in March. Other notable buyers included the Central Bank of Uzbekistan, which purchased 9 tonnes, and the National Bank of Kazakhstan with 6 tonnes. Guatemala and the Czech Republic also contributed to the buying list, each acquiring 2 tonnes.
Turkey’s decision to sell 60 tonnes of gold stemmed from needs for foreign exchange and liquidity. To date, Ankara has sold a total of 79 tonnes. Furthermore, the Central Bank of the Republic of Turkiye exchanged 80 tonnes of gold to enhance liquidity. Experts note that unlike other central banks that treat gold as a long-term passive reserve, Turkey actively employs gold as a macro-financial buffer.
Russia’s sale of 6 tonnes was influenced by its reliance on gold to address budget deficits, as analysts suggested that divesting gold provided an avenue for enhancing liquidity in the economy.
The trend of central banks becoming net sellers should not raise concerns. Nations including Turkey, Russia, Poland, Azerbaijan, and Kazakhstan are engaging in sales to defend their currencies, manage budget deficits, rebalance investment portfolios, and combat domestic inflation.
Gold prices soared to an unprecedented high of $5,608 an ounce on January 29, but have since declined over 15%, now hovering around $4,675 an ounce. Despite this drop, gold has increased by more than 7% this year, though it has lost some gains recently.
As of March 31, Poland led the year-to-date gold purchases with 31 tonnes, trailed by Uzbekistan (25 tonnes), Kazakhstan (13 tonnes), and China (7 tonnes), according to Salim. Other central banks, including those of the Czech Republic, Malaysia, Guatemala, Kyrgyz Republic, Cambodia, Indonesia, and Serbia, have also reported net purchases.
Gold’s rally since 2024 has been attributed to expectations of interest rate cuts from central banks, geopolitical crises, and trade disputes, particularly involving the US and China, leading to its perception as a strategic investment asset. However, since the onset of the conflict in Iran, gold prices have dipped as investors focus on concerns regarding inflation, sluggish economic growth, and rising crude oil prices, prompting a shift toward fossil fuel investments.
Published on May 6, 2026.
