Gold purchases by central banks across the world increased to 20 tonnes in May from 16 tonnes in April. However, they were lower than the 12 months average of 27 tonnes, the World Gold Council (WGC) said.

“Fresh tensions in the Middle East may have reinforced the strategic appeal of gold for central banks looking to safeguard reserves against geopolitical shocks,” said Marissa Salim, Senior Research Lead, APAC. 

The National Bank of Kazakhstan (NBK) added seven tonnes of gold to its reserves in May, lifting its total holding of the precious metal to 299 tonnes. Since the start of 2025, NBK gold reserves have increased by 15 tonnes.

Largest buyer in 2025

The Central Bank of Turkey purchased six tonnes of gold in May, lifting its gold accumulation for 2025 to also 15 tonnes. The National Bank of Poland, the largest buyer of bullion so far in 2025, bought six tonnes. It has added 67 tonnes to its reserves in 2025.

The People’s Bank of China and the Czech National Bank added 2 tonnes of gold each in May to their reserves. Three other central banks, the National Bank of the Kyrgyz Republic, the National Bank of Cambodia, the Central Bank of the Philippines and the Bank of Ghana, added one tonne of gold each this month to their reserves. 

Some central banks offloaded gold from their reserves in May. The Monetary Authority of Singapore led the sell-off in May, shedding  5 tonnes, followed by the Central Bank of the Republic of Uzbekistan and the Deutsche Bundesbank. Both sold 1 tonne of gold each.  

Uzbekistan is the largest net seller of gold so far in 2025, offloading 27 tonnes, while Singapore’s Monetary Authority has sold 10 tonnes. 

Qatar purchase up

Meanwhile, updated data for April revealed that the Qatar Central Bank bought 2 tonnes of gold, taking its global net purchases to 16 tonnes, said Salim.

On the other hand, Citibank joined Motilal Oswal Wealth Management and research agency BMI in predicting that gold could moderate in the third quarter. It expects gold to consolidate around $3,100-3,500 per ounce, as the yellow metal moderates due to geopolitical de-escalation in the West Asia and an improved global growth outlook.

“We expect continued price consolidation … and highlight our view that we may have already seen the highs at $3,500/oz in late April as the gold market deficit is peaking soon if not already,” Citi said in the note.

Banks’ survey

Despite the not-so-optimistic outlook on gold, the precious metal’s spot price was headed for a 2 per cent weekly gain at $3,334.47 per ounce. US gold futures were up at $3,344.70.

In the Mumbai spot market, fine gold (.999) was quoted at ₹97,020 per 10 gm against ₹97,337 on Thursday. August gold futures on MCX, however, closed higher in the first session at ₹96,785 against ₹96,782 on Thursday. 

Salim pointed out at WGC’s recent release of Central Bank Gold Reserves Survey 2025 in which 95 per cent of respondents expect global central bank gold reserves to rise in the next 12 months. At least 43 per cent anticipate an increase in their holdings from 29 per cent in 2024 — a record high. Banks in emerging and developing nations are showing stronger intent than advanced economies in having more gold as their reserves.

Gold has had a bull run since 2019, with prices almost tripling during the period in the global and Indian markets. Gold has gained over 27 per cent year-to-date, and its year-on-year gain is nearly 40 per cent.

Published on July 4, 2025