The upward momentum of gold prices may be slowing down in the short term, but central banks continue to send clear signals to the market: they maintain buying activity when prices adjust, despite the economic environment still fluctuating.
The latest data from the World Gold Council (WGC) shows that central banks net sold 30 tons of gold in March, mainly due to large-scale sales from Turkey and Russia. However, the overall picture of the precious metals market is still positively assessed as many countries continue to increase reserves during the price downtrend.
Poland, Uzbekistan and Kazakhstan continued to be in the active net buying group, while China extended its series of months of continuously increasing gold reserves.
According to analysts, what is noteworthy is not a short-term net selling month but a strategic gold accumulation trend that has taken place in the past 4 years. Gold buying activities are increasingly associated with the goal of diversifying foreign exchange reserves, responding to geopolitical risks and reducing dependence on the USD.
China continues to play an important role in this trend. The People's Bank of China (PBOC) has now had its 18th consecutive month of officially increasing gold reserves.
Data shows that China is still taking advantage of increasing purchases during price adjustment periods. In March alone, PBOC bought an additional 8 tons of gold – the largest purchase since December 2024 when gold prices were still about 16% lower than the historical peak set in January 2026.
WGC said that gold currently accounts for only about 15% of total global reserve assets, showing that the room for central banks to continue to increase the proportion of gold is still quite large.
Even when gold prices are anchored in highs, many countries are still starting to participate in the market. Kosovo's decision to buy gold for the first time in history is seen as a sign that even small central banks are seeking to consolidate stable reserves through precious metals.
According to experts, the recent behavior of central banks shows that gold buying demand is currently less sensitive to price fluctuations compared to previous cycles. This reflects that formal institutions are focusing more on long-term reserve strategies instead of short-term price fluctuations.
Demand from the formal sector also contributes to creating support for gold prices in adjustment phases. Although speculative positions and ETF capital flows can still cause gold prices to fluctuate in the short term, buying activities from central banks are helping the market maintain a more stable foundation.
However, gold may still be under pressure if bond yields rise, the USD strengthens, or geopolitical tensions change. However, analysts believe that as long as central banks consider gold as a core reserve asset, sharp drops in gold prices are likely to attract buying again.
Currently, the gold market is still in a period of accumulation as investors are waiting for new macroeconomic factors. Meanwhile, central banks are still quietly increasing gold reserves - a factor considered one of the important support forces of the market in the remainder of 2026.
