10.04.202601:01 Forex Analysis & Reviews: Central Banks Actively Buy Cheap Gold!

Central banks have intensified strategic gold purchases amid a price correction, seizing the opportunity to acquire the precious metal at a bargain price. This is evidenced by analytical data presented by Krishan Gopaul, a leading analyst for EMEA at the World Gold Council.

In a series of analytical notes published on social media, Gopaul detailed the recent gold purchases, indicating that central banks took advantage of the reduced price of the precious metal. The dynamics of these operations suggest a strong desire among banks to increase their gold reserves at lower prices.

"The statistics released by the Czech National Bank confirm an increase in its gold portfolio in March by 2 tons," the analyst noted. "Net purchases for the first quarter reached 5 tons, boosting the total volume of gold assets to 77 tons."

At the same time, the Bank of Guatemala increased its gold assets by 2 tons during the reporting period. "This represents a 19% increase compared to the previous month and is the first expansion of reserves since September (6 tons)," Gopaul clarified. "Guatemala's current gold reserves stand at 16 tons."

According to data compiled by the International Monetary Fund (IMF), a leading player in sovereign purchases in 2024-2025, the activity has once again been significant. "The National Bank of Poland achieved a net increase in its gold reserves by 11 tons in March," Gopaul emphasized. "Thus, total purchases since the beginning of the year have reached 31 tons, with the total volume of gold assets at 582 tons."

The Central Bank of Uzbekistan also recorded a substantial increase in its gold stocks, adding 9 tons in March. This operation marks the sixth consecutive monthly purchase. "The net increase for the first quarter amounted to 25 tons, bringing the total volume of gold reserves to 416 tons," the analyst stated.

Earlier this week, the People's Bank of China reported a growth in its gold reserves by 5 tons in March—the largest monthly increase since February 2025. This series of purchases has lasted for 17 months. China's official gold reserves currently stand at 2,313 tons.

Gopaul also highlighted additional purchases made in February. "Data from the National Bank of Kazakhstan show an increase in its gold reserves by nearly 8 tons in February," he reported. "This allowed Turkey's gold reserves to rise to 348 tons, a peak level since January 2023. Data also predict that net purchases by central banks in February reached 27 tons."

Notably, the sovereign gold market segment has shown increased volatility amid escalating geopolitical tensions over the conflict with Iran. Analysts propose that central banks may need to monetize their gold reserves to maintain macroeconomic stability.

In this context, the Central Bank of Turkey stands out for its transparency in managing official reserves. According to published data, Turkey's gold reserves decreased by 69.1 tons in March, bringing the total decline over the past month to more than 118 tons.

This reduction is reportedly the most significant for Turkey's gold reserves since 2013.

The Turkish central bank clarified that a portion of the gold was sold; however, a substantial share was monetized through swap operations. The liquidity obtained in this manner was directed toward purchasing the national currency (lira) and other foreign currencies, with the aim of stabilizing the economic situation.