Summary of this article
Central banks turned net sellers of gold in March 2026 after 10 months, led by heavy selling from Turkey and Russia
Poland, Uzbekistan, Kazakhstan and China continued buying gold despite the overall selling trend
Gold prices remain supported by geopolitical tensions and hopes of lower US interest rates
For the first time in 10 months, central banks across the world turned net sellers of gold in March, signalling a temporary pause in the aggressive reserve accumulation that had supported bullion prices through the past year. Data released by the World Gold Council showed that central banks sold a net 30 tonnes of gold during the month, mainly due to large sales by Turkey and Russia.
Turkey emerged as the biggest seller, offloading 60 tonnes of gold in March as the country tapped its reserves for foreign exchange and liquidity management purposes. Russia also sold 6 tonnes during the month. Separately, quarterly data from Azerbaijan’s sovereign wealth fund, SOFAZ, showed net sales of 22 tonnes in the January-March quarter.
Emerging Market Central Banks Partly Offset Selling
The heavy gold sales by Turkey and Russia were partly balanced by continued buying from several emerging market central banks, especially in Eastern Europe and Asia. Poland remained the biggest gold buyer in March, adding 11 tonnes to its reserves. The country has been steadily buying gold for more than three years and has increased its purchases significantly over the past one year.
Uzbekistan purchased 9 tonnes during the month, while Kazakhstan added 6 tonnes. China’s central bank extended its buying streak to 17 consecutive months, purchasing another 5 tonnes in March. Guatemala and the Czech Republic also reported net purchases of 2 tonnes each.
According to Marissa Salim, Senior Research Lead for Asia Pacific at the World Gold Council, gross gold purchases by central banks stood at 37 tonnes in March, while gross sales totalled 66 tonnes, resulting in net selling of 30 tonnes for the month. So far in 2026, central banks have been net sellers of 27 tonnes of gold, as against an average monthly net purchase of 21 tonnes over the past year.
Poland Leads Global Central Bank Gold Buying In Q1 2026
Even though central banks turned net sellers in March, the overall trend still shows that many emerging economies continue to increase their gold reserves. Countries are buying more gold to diversify reserves amid geopolitical tensions, inflation concerns and lower dependence on the US dollar.
In the first quarter of 2026, Poland remained the world’s biggest gold buyer with total purchases of 31 tonnes. Uzbekistan bought 25 tonnes, Kazakhstan added 13 tonnes and China purchased 7 tonnes. Central banks in countries such as Malaysia, Indonesia, Serbia, Cambodia and the Kyrgyz Republic also increased their gold holdings during the quarter.
Turkey, however, was the biggest gold seller during the quarter, with its official gold reserves falling by 79 tonnes. The World Gold Council said a large part of the decline was due to additional gold swap operations carried out in March.
The selling comes at a time when gold prices are trading under pressure after logging record highs in January 2026. However, gold prices are still being supported by geopolitical tensions, hopes of lower US interest rates and strong central bank demand over the past two years.
Gold futures on the Multi Commodity Exchange traded at Rs 1,52,873 per 10 grams, as of 12:20 PM on May 8, about 25 per cent below its record high of Rs 2,02,984 per 10 grams.
On the COMEX, gold futures last quoted at $4,732.90 per ounce, around the same time.
Frequently Asked Questions
1. Why did central banks sell gold after buying continuously for 10 months?
Central banks turned net sellers mainly because Turkey and Russia sold large quantities of gold in March. Turkey used part of its gold reserves for foreign exchange and liquidity management, which outweighed purchases made by other countries.
2. Which countries are buying the most gold in 2026?
Poland has emerged as the world’s biggest central bank gold buyer in 2026, followed by Uzbekistan, Kazakhstan and China. These countries have been steadily increasing gold reserves over the past few years.
3. Why are central banks increasing gold reserves globally?
Many countries are buying more gold to diversify their foreign exchange reserves, reduce dependence on the US dollar and protect themselves against geopolitical tensions, inflation and global economic uncertainty.
