A. SREENIVASA REDDY (ABU DHABI)
Central banks continued to accumulate gold in July, reporting net purchases of 23 tonnes, with China and Poland leading the buying, according to data compiled by the World Gold Council (WGC).
Central banks reported net purchases of around 130 tonnes in the first seven months of the year, compared with approximately 160 tonnes during the same period last year.
The People’s Bank of China added 20 tonnes to its gold reserves in July, marking its 21st consecutive month of purchases. Its buying activity has accelerated in recent months, with double-digit monthly purchases recorded since May.
China purchased 60 tonnes of gold during the January-July period, ranking second behind Poland. Its official gold reserves reached around 2,366 tonnes, representing 8% of the country’s total reserves. China is the world’s sixth-largest reported holder of gold.
The National Bank of Poland purchased eight tonnes in July and remained the largest central-bank buyer so far this year. Poland acquired 90 tonnes during the first seven months, taking its total gold holdings to 640 tonnes, compared with its target of 700 tonnes. Gold accounts for approximately 28% of the country’s total reserves.
The Czech National Bank bought two tonnes in July, extending its net-buying streak to 41 consecutive months. It purchased 12 tonnes in the year to the end of July, lifting its gold holdings to 84 tonnes, equivalent to 6% of its total reserves.
The National Bank of Kazakhstan, Bank Negara Malaysia, and the Central Bank of Bolivia each purchased one tonne in July.
Kazakhstan accumulated 29 tonnes during the first seven months and ranked among the world’s five largest gold buyers over the period. Gold accounted for 75% of the country’s total reserves.
Malaysia and Bolivia were relatively recent entrants to the central-bank gold market, with their year-to-date purchases reaching six tonnes and two tonnes, respectively.
Uzbekistan sold one tonne in July but remained a net buyer for the year, with purchases of 40 tonnes during the January-July period. Its gold holdings stood at around 431 tonnes, accounting for 87% of its total reserves.
WGC said Central Bank of Uzbekistan Governor Timur Ishmetov was looking to engage with American money managers. While “gold has turned out to be the best investment so far”, the central bank was considering potential sales at “favourable prices” as part of its overall reserve management plan, the report said.
Russia was the largest net seller in July, offloading six tonnes. It sold a total of 50 tonnes during the first seven months, reducing its gold holdings to 2,277 tonnes.
The Central Bank of the Republic of Turkiye sold one tonne in July, taking its total sales for the year to 85 tonnes. Jordan also sold one tonne during the month.
Separately, the Bank of Korea announced an official allocation to gold after 13 years. The allocation through gold-backed exchange-traded funds was estimated at $250 million, equivalent to approximately two tonnes. The bank also announced plans to purchase domestically refined gold to diversify its reserves and hedge against inflation and geopolitical risks.
The Bank of Namibia, meanwhile, raised its gold accumulation target and aims to increase gold’s share of its reserves from 1% to 3% by the end of March 2027. The bank signed an agreement in March with local mining company QKR Namibia Navachab to support the expansion of its gold reserves.
Commenting on the report, Dhaval Jasani, a Dubai-based chartered accountant who publishes a regular bulletin on the gold market, said: “The steady, broad-based nature of this buying is the real story — it isn’t just China and Poland anymore. When central banks as varied as those of Kazakhstan, Malaysia, Bolivia, Namibia, and South Korea are all raising their gold allocations, it points to a structural shift in reserve management rather than a short-term trade.”
Central banks are diversifying away from an overwhelming reliance on the US dollar and hedging against currency volatility, sanctions risks and geopolitical uncertainty, Jasani said.
For the GCC region in particular, this trend reinforces gold’s role as a portfolio anchor at a time when regional investors are navigating currency-linked exposures and uncertainty over global interest rates, he added.
“Even as the pace of buying has moderated slightly from last year, the direction remains firmly towards higher gold reserves, not lower,” Jasani said.