Central Bank Gold Buying Slows in January as New Sovereign Players Enter the Market

Central bank gold purchases in January amounted to less than one-fifth of the average monthly buying recorded in 2025, yet the entry of new sovereign participants indicates that the base of official-sector demand for gold reserves is expanding, according to the latest figures from the World Gold Council.

Marissa Salim, Senior Research Lead for APAC at the World Gold Council, noted in the Council’s latest monthly update that momentum in official gold buying moderated at the beginning of the year compared with the previous 12-month average of 27 tonnes per month. Net purchases in January reached 5 tonnes. She added that heightened price volatility and the holiday period may have encouraged some central banks to pause temporarily, although persistent geopolitical risks are expected to underpin continued accumulation throughout 2026 and beyond.

Salim highlighted that January’s sovereign activity was largely concentrated in Asia and Eastern Europe.

The Central Bank of Uzbekistan led purchases with 9 tonnes, extending its buying streak that began in October. This lifted the country’s total gold reserves to 399 tonnes. Uzbekistan’s allocation to gold has risen markedly in recent years, climbing from 57% of total reserves in the same period of 2020 to 86% as of January 2026.

Malaysia’s central bank, Bank Negara Malaysia, also re-entered the market, purchasing 3 tonnes in January—its first increase since 2018. The addition brought its holdings to 42 tonnes, representing about 5% of total reserves at month-end.

Other buyers included the Czech Republic and Indonesia, which each added 2 tonnes, while China and Serbia purchased 1 tonne apiece. China’s continued buying—now extending to 15 consecutive months—has pushed gold to nearly 10% of its total reserve assets.

On the selling side, the Bank of Russia was the largest net seller in January, reducing its holdings by 9 tonnes. The Bulgarian National Bank followed with a 2-tonne reduction, reflecting the transfer of gold to the European Central Bank as part of Bulgaria’s adoption of the euro on January 1, 2026, which made it the 21st member of the European Union. Kazakhstan and Kyrgyzstan each reduced their reserves by 1 tonne.

South Korea also signaled renewed interest in gold. The Bank of Korea announced plans to include overseas-listed physically backed gold ETFs in its foreign reserve portfolio starting in the first quarter of 2026, marking its first gold-related investment since 2013. The bank pointed to liquidity and trading flexibility as key advantages of ETFs compared with holding physical bullion. It currently holds 104 tonnes of physical gold—approximately 4% of its reserves—ranking 41st globally.

According to the Council’s 2025 Central Bank Gold Reserves Survey, the use of ETFs as a channel for gold exposure remains uncommon among central banks, with none of the surveyed institutions reporting that they had chosen this method for acquiring gold.

The World Gold Council believes that a broader group of central banks participating in the market could become a defining trend in 2026. As seen in January, both Malaysia and South Korea resumed gold accumulation after extended periods of inactivity. Salim concluded that the coming weeks may be pivotal in shaping this year’s geopolitical environment, particularly as tensions between the United States and Iran intensify without clear signs of diplomatic resolution. The sustained pace of official gold accumulation since 2022 reflects how nations are positioning themselves within an evolving global order.