Central Bank Gold Demand: Trends and Strategic Movements
Global demand for gold from central banks has shown a distinct pattern, revealing a concentration among a select group of persistent buyers rather than an even distribution throughout the financial landscape.
Concentrated Demand in Emerging Markets
Recent data indicates that although more than 60 central banks have made gold purchases in recent years, the bulk of net demand is primarily driven by a few proactive accumulators, especially in emerging markets. According to the World Gold Council, the National Bank of Poland has aggressively added around 80 to 95 tonnes in 2025. Meanwhile, the People’s Bank of China has maintained a consistent buying streak for over 16 months, holding reserves that exceed 2,300 tonnes.
Kazakhstan has also been steadily increasing its gold holdings, contributing approximately 40 to 50 tonnes. In contrast, Turkey and India have adopted a more cyclical acquisition strategy, alternating between purchases and pauses based on local and market conditions. This focused demand from a limited number of banks has sustained global gold demand above historical averages since 2022, with peak years seeing annual demand exceeding 1,000 tonnes, despite a slight easing expected in 2025-2026.
Africa’s Cautious Steps into Gold Accumulation
In Africa, gold accumulation by central banks remains modest but increasingly strategic. Notably, Uganda is leading the way, with a new initiative aimed at buying at least 100 kilograms (0.1 tonnes) of domestic gold over the next four months.
Last year, African central banks exhibited diverse but increasingly strategic performances with gold playing a critical role in tackling currency pressures and economic instability. Ghana stood out by aggressively enhancing its reserves to bolster the cedi, in stark contrast to Egypt’s more cautious approach focused on maintaining stability. Zimbabwe has ventured into experimenting with a gold-backed currency, achieving immediate stability but grappling with ongoing concerns regarding credibility.
In Kenya, gold reserves remain remarkably low at just 0.02 tonnes; however, policymakers have signaled intentions to commence gradual accumulation. With foreign reserves estimated at $12 to $13 billion, there is potential for Kenya to diversify into gold as part of broader reserve management reforms.
Looking towards the Democratic Republic of the Congo, the government aims to facilitate the production of 15 tonnes of artisanal gold by 2026, a move to formalize mining output and strengthen governmental control over bullion flows.
Despite holding a relatively minor share of global central bank gold reserves, Africa’s trajectory is becoming increasingly discernible. The continent is not rushing into aggressive accumulation but is instead adopting a gradual, structured, policy-driven approach. This aligns with a broader global trend where gold is progressively regaining prominence as a reserve hedge amid uncertain financial markets.
In conclusion, as central banks globally adapt their strategies surrounding gold, the patterns of demand and acquisition reveal significant insights into monetary strategies and reserve management. In particular, emerging markets and African nations are entering a pivotal phase of gold accumulation that could redefine their monetary policies and economic stability.
