Central banks added gold holdings at the fastest pace in more than a year in the first quarter, as a slump in prices encouraged a wave of buying that more than offset sales by a handful of institutions.

Net official-sector purchases totaled 244 tons in the three months, up from 208 tons in the previous quarter, according to estimates from the World Gold Council, an industry body. Poland, Uzbekistan and China were the largest reported buyers, although some other purchases were undeclared.

Gold prices have swung wildly this year, hitting a record in late January, before slumping in March after the outbreak of the US-Iran war. Among factors weighing on bullion were soaring energy prices, which raised expectations that central banks will keep borrowing costs steady or even hike them to contain inflation. That’s a headwind for the metal, which does not bear interest.

“It’s the first time in a while that we’ve seen a decent correction in gold,” said John Reade, chief strategist at the London-based World Gold Council. “That has allowed central banks that might have been hanging back, waiting for exactly this opportunity, to come in and scoop up a load.”

The jump in net accumulation is especially marked given several central banks pared holdings. Turkey, Russia and Azerbaijan joined a number of other smaller banks and sovereign wealth funds in shedding an estimated 115 tons over the period. At the time, the moves raised concerns about institutions’ continued appetite for gold, a trend that’s been a key driver of its multi-year rally.

Each bank had its own motivation for selling: Turkey to shield its currency and economy from the effects of the war; Russia to meet a budget deficit; and in Azerbaijan’s case, to bring holdings back within permitted limits.

Spot bullion was trading a little below $4,600 an ounce shortly ahead of the WGC’s report. Prices peaked at a record near $5,600 on Jan. 29, then went on to shed 12% in March to cap the biggest monthly drop since 2008.

Much of the central-bank buying included in the WGC’s figures isn’t disclosed, and not included in International Monetary Fund statistics. Consultancy Metals Focus Ltd. calculates estimated purchases on behalf of the WGC using a combination of public data, trade statistics and field research.

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Published on April 29, 2026