A. SREENIVASA REDDY (ABU DHABI)
Central banks around the world bought an estimated 244 tonnes of gold during the first quarter of 2026, marking a 3% year-on-year increase, even as selling activity picked up during the period, according to the World Gold Council (WGS).
The figure represents net purchases after accounting for sales, with demand remaining robust despite heightened market volatility and geopolitical uncertainty.
On a quarter-on-quarter basis, purchases were also higher, underscoring continued strategic accumulation of gold reserves.
The WGS report noted that central bank buying remained strong against a backdrop of geopolitical tensions and economic uncertainty, reinforcing gold’s role as a key reserve asset. At the same time, an uptick in selling highlighted the metal’s function as a source of liquidity during periods of stress.
Among the major buyers, the National Bank of Poland led purchases with 31 tonnes, taking its gold reserves to 582 tonnes. This was followed by the Central Bank of Uzbekistan, which added 25 tonnes, lifting its holdings to 416 tonnes, representing 87% of its total reserves.
The People’s Bank of China increased its gold reserves by 7 tonnes in Q1, taking its total holdings to 2,313 tonnes, or about 9% of total reserves.
Other additions came from a range of central banks, including Kazakhstan and Malaysia, while the Central Bank of the UAE purchased 1 tonne during the quarter.
The Central Bank of the UAE (CBUAE) does not officially disclose its gold holdings in tonnes. However, it said in a statement in March that its gold reserves were valued at Dh43.051 billion at the end of January 2026.
While buying remained elevated, central bank sales also increased notably during the quarter. Data indicates that around 115 tonnes of gold were sold by central banks and sovereign entities, reflecting a rise compared to recent periods.
Turkey emerged as the largest seller, with its official gold holdings declining by about 70 tonnes during the quarter. A significant portion of these sales occurred in March, as the central bank used gold reserves for liquidity and foreign exchange management purposes.
Other notable sellers included the State Oil Fund of Azerbaijan (SOFAZ), which sold 22 tonnes, and the Central Bank of Russia, which also reported a 22-tonne sale. Smaller sales were recorded by institutions such as the National Bank of the Kyrgyz Republic.