(Mike Maharrey, Money Metals News Service) The pace of central bank gold buying slowed modestly in January in the midst of record-high prices.
We also saw the pace of selling pick up steam to kick off the year.
On net, central banks globally added five tonnes of gold to their reserves in January.
World Gold Council analysts say a couple of factors may have limited central bank buying in January, but they don’t see it as a developing trend.
“Volatile gold prices and the holiday season may have given some central banks pause, though geopolitical tensions, which have shown little sign of abating, are likely to keep accumulation going through 2026 and beyond.”
While buying volume slowed, the World Gold Council detects a broadening buying base developing as we enter a new year.
“While we see continuation of gold buying from central bankers who purchased gold in the previous year, the broadening of the demand base could be an emerging theme.”
The Bank Negara Malaysia made its first gold purchase since 2018 in January, expanding its reserves by 3 tonnes. Meanwhile, the Bank of Korea announced a plan to resume gold investments for the first time since 2013.
Uzbekistan was the biggest buyer in January, adding 9 tonnes of gold to its holdings. The Uzbek central bank has been adding to its reserves since October. Since 2020, gold’s share of Uzbek reserves has increased from 57 to 86 percent.
The Czech Republic continued adding gold to its holdings, increasing its reserves by another 2 tonnes. The Czech central bank has adopted the slow, steady approach, buying gold for 35 straight months. The country added 20 tonnes to its holdings last year. The Czech Republic now holds 74 tonnes of gold. Czech officials say they plan to increase gold reserves to 100 tonnes by 2028.
China continued to buy gold, albeit at a slower pace, at least based on official numbers. The People’s Bank of China reported a 1-tonne increase in gold reserves in January, its 15th consecutive monthly purchase. It’s reported that gold reserves now stand at 2,307 tonnes, making up almost 10 percent of total official reserves.
Notice the emphasis on “official.”
China is among the central banks that are likely to hold significantly more gold than they publicly disclose. As Jan Nieuwenhuijs has reported, the People’s Bank of China is secretly buying large amounts of gold off the books. According to data parsed by the renowned Money Metals researcher, the Chinese central bank is currently sitting on more than 5,000 tonnes of monetary gold located in Beijing – more than TWICE what has been publicly admitted.
Mainstream reporting has finally picked up on this.
Two other countries reported an increase in official gold reserves in January.
- Indonesia – 2 tonnes
- Serbia – 1 tonne
Russia was the biggest seller in January with a 9-tonne decrease in its gold holdings. The country is reportedly liquidating some of its gold reserves to stabilize the economy as ongoing sanctions continue to wreak havoc.
Kazakhstan and the Kyrgyz Republic both reported 1-tonne sales.
It is not uncommon for banks that buy from domestic production – such as Uzbekistan and Kazakhstan – to flip-flop between buying and selling.
Looking at the broader trend, central bank gold buying moderated in 2025 but remained far above the recent historical average. Official net full-year buying came in at 863.3 tonnes. That was down 21 percent year-on-year, charting the lowest level since 2021.
However, while central bank gold purchases declined last year, they were still well above the 2010-2021 annual average of 473 tonnes.
Last year was the fourth-largest expansion of central bank gold reserves on record. The all-time high was set in 2022 (1,136 tonnes). It was the highest level of net purchases on record, dating back to 1950, including since the suspension of dollar convertibility into gold in 1971.
The surging gold price was likely a factor in slowing central bank gold accumulation. As the World Gold Council put it, the higher price prompted “a more cautious approach.”
“This highlights that central banks are not insensitive to price dynamics, even as their long-term strategic interest in gold remains firmly intact.”
Despite the modest slowdown in gold accumulation, the World Gold Council remains bullish, saying that “persistent economic and geopolitical uncertainty is likely to sustain demand for gold as a reserve asset.”
“We maintain our view that central banks will continue to add gold to their reserves. Our Central Bank Gold Reserves Survey 2025 shows that respondents overwhelmingly (95 percent) expect global central bank gold reserves to increase over the next 12 months, while 43 percent believe that their own gold reserves will also increase over the same period. Notably, none of the respondents anticipate a decline in their gold reserves.”
You can read more details about that central bank survey HERE.
Mike Maharrey is a journalist and market analyst for Money Metals with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.
