Türkiye leads global gold purchases in April, central bank data reveals

Data revealed on Wednesday the central banks that stockpiled the most gold in the month of April. Türkiye emerged as the world leader in gold purchases for the month, leaving other countries far behind, with China and India trailing. The Central Bank of the Republic of Türkiye (CBRT) alone made gold purchases totaling 8 tons in April.

The rapid surge in gold prices in March raised various questions, one of which was whether central banks, which have been cited as a key driver of the recent price hikes, would alter their gold-buying behavior.

According to data reported through IMF and public sources, global gold reserves saw a net increase of 33 tons in April, showing a similar rise to February levels (27 tons). While gross purchases decreased from 39 tons in March to 36 tons, gross sales saw a more significant decline from 36 tons in March to 3 tons in April.

Türkiye became the world’s largest gold buyer

In April, Türkiye emerged as the largest gold buyer in the world. Eight central banks increased their gold reserves by one ton or more in April, with the Turkish central bank being the largest buyer, increasing its official reserves by 8 tons. With this, the bank has made purchases for 11 consecutive months, reaching an annual net purchase of 38 tons, and raising the total official gold holdings to 578 tons.

The Central Bank of Kazakhstan purchased 6 tons, the Reserve Bank of India 6 tons, the Central Bank of Poland 5 tons, the Monetary Authority of Singapore 4 tons, the Central Bank of Russia 3 tons, and the Czech National Bank 2 tons, making them the other major buyers for the month.

China slows down

China slows down gold purchases, reporting a significant slowdown in gold acquisitions by its Central Bank. The bank reported a slight increase in gold reserves, just below 2 tons, reaching 2,264 tons in April. This marks the lowest monthly increase since it resumed reporting in November 2022, significantly below the previous monthly average of 18 tons before April.

Notable gross sales were limited to the Central Banks of Uzbekistan and Jordan, both reporting a decrease of 1 ton in gold reserves, indicating a significant decrease in sales pace compared to February and March.

Looking back at March, the net purchases for the month were revised to only 3 tons following the belated reporting of a 12-ton sale by the Central Bank of the Philippines. While gross purchases remained relatively stable against the rapidly rising gold price in March, gross sales showed a significant increase due to the intense selling activities of four banks. This suggests that the price performance may have some impact on the activities of certain central banks.

Central banks continue to stockpile gold

Despite the slowdown in March, the first recovery in net purchases in April indicates that central banks have weathered the gold price rally so far and continue with their strategic purchasing plans.

The Central Bank Gold Survey 2024 report will be released in June, providing detailed insights into central banks’ thoughts on gold and how this may affect future gold purchases.