Central Bank Gold Demand And Price Trends

Central bank demand has been a key driver of the gold price since 2023. While a few countries have sold some gold in early 2026, several others have picked up the pace and their continued demand provides long term support for price. Follow current market movements with the gold spot price chartand spot price charts.

During interviews in late 2025, I recall being asked what could derail the bull market in precious metals. My answer was an interruption in the record level of central bank gold demand that had persisted from 2023-2025. At the time, there were no signs that central bank gold demand would relent but we didn't have to wait long for things to change.

Impact Of Central Bank Gold Sales On Precious Metals

The onset of the Iran War disrupted the fundamental drivers of many markets, crude oil being the most obvious. But the market for U.S. treasuries has also been impacted by selling due to inflation expectations and global central bank reserve management as sovereign holdings have been sold in order to provide liquidity and local currency support.

And these central bank actions extended to gold sales, too, most notably from Turkey where the central bank is reported to have sold as many as 120 metric tonnes of gold in March and April. You could actually see this occur and impact price during the period of March 18-23. The Turkish gold sales most likely took place in London and you can see the impact during London trading hours on the chart below.

Gold - 30 Minute Candlestick Chart

For now, though, the heavy selling of March seems to have subsided and the trend returned to net buying in April. See the chart below from the World Gold Council.

Central Bank Gold Demand Chart

China Gold Purchases And Central Bank Buying

Reports for May are beginning to trickle in and the news here is positive, too, with China adding ten metric tonnes while Uzbekistan added another nine more.

China and Uzbekistan Add to Gold Reserves

It's the ramp up in official Chinese demand that is most startling. Why? In 2025, official PBOC gold purchases totaled 27 metric tonnes or about 2 mts/month on average. The year 2026 began at the same pace but since the Iran War began and the gold price began to move lower, PBOC demand has accelerated considerably. The chart below lays it out for you.

China Gold Buying Chart

Unlike western traders who are selling into weakness, the Chinese are buying the dip....aggressively buying the dip!How else would you describe a level of buying in the past 90 days that nearly matches their total for the entirety of 2025? And as other central banks like Poland and Azerbaijan continue to accumulate gold, it appears that calendar year 2026 will be another strong one for total global gold demand.

Central Banks That Bought the Most Gold in 2025

Global Gold Demand Outlook And Central Bank Reserves

And what happens when the Iran War eventually ends and the Turks return? They dumped 180 metric tonnes in early 2023, only to buy nearly all of it back in 2024 and 2025. You've got to figure that they'll do the same later this year and next, which only adds to the total global demand number.

Turkish Central Bank's Gold Reserves

Gold Investing Strategy During Market Dips

In summary, the bull market in gold has been temporarily derailed by a combination of factors, chief among them a disruption in the central bank gold demand that has underpinned price since 2023. But that disruption has been limited and mostly driven by a few stressed countries. Other major central banks have stepped up their buying in response and are taking advantage of the short term dip in price. Perhaps you should consider following their lead?

Investors looking to diversify with physical precious metals can explore gold bars and coins and silver bars and coins, monitor the silver spot price chart, and read more market analysis such as COMEX Gold Price Analysis And Technical Support and Gold & Silver Stay Strong Despite 2026 Chaos.