According to the latest report from the World Gold Council (WGC), central banks net sold 30 tons of gold in March. This is a noteworthy development as the central banking sector is considered a pillar supporting the long-term upward momentum of gold prices.
Ms. Marissa Salim - Head of Asia-Pacific Regional Research Department of WGC - said that sales mainly come from Turkey and Russia.
Accordingly, the Central Bank of Turkey sold 60 tons of gold in March, while Russia sold 16 tons. In addition, the State Oil and Gas Fund of Azerbaijan (SOFAZ) also recorded a net selling of 22 tons of gold in Q1/2026.
In the opposite direction, some countries continue to increase gold reserves to diversify assets and reduce dependence on the USD.
The State Bank of Poland was the largest buyer in March with 11 tons of gold. Followed by Uzbekistan buying 9 tons and Kazakhstan buying 6 tons.
The People's Bank of China continued to extend its gold buying streak for the 17th consecutive month, while increasing the gold buying speed in March by 5 tons. Guatemala and the Czech Republic also net bought about 2 tons each.
In the first quarter of 2026, Poland continued to be the largest gold buyer with a total of 31 tons. Uzbekistan ranked second with 25 tons, Kazakhstan bought 13 tons and China bought an additional 7 tons.
According to the WGC, Turkey was the strongest gold seller in the first quarter as public sector gold holdings fell by 79 tons. In March alone, the country's central bank used about 80 tons of gold through gold swap contracts.
This move takes place in the context of Turkey facing pressure from capital withdrawal from the market and a sharp increase in foreign currency demand. The central bank has used gold to exchange for USD to support the lira and stabilize the economy.
Before the Iranian conflict broke out, Turkey's gold reserves were nearly 830 tons. However, by the end of March, this number had decreased to about 693 tons, equivalent to a decrease of 127 tons.
After the US and Iran reached a ceasefire, market conditions gradually stabilized, creating conditions for Turkey to re-accumulate gold. The latest data shows that the country's gold reserves have increased again to about 730 tons as of April 17.
WGC believes that gold demand from central banks still plays an important role in the precious metals market. However, conflicts in the Middle East and global inflationary pressure are making gold trading activities of central banks more volatile.
Analysts believe that disruptions to the global supply chain, especially in the energy market, are increasing inflationary pressure. This continues to support the safe-haven role of gold in the context of a still volatile world economy.
