Quick overview

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Global central bank statistics and the broader gold market point to a slight slowdown in buying momentum at the start of the year, although it is worth noting that the base of demand continues to broaden.

Investor repositioning amid the Middle East conflict and the surge in oil and gas prices remains unclear. Still, gold remains firmly on the radar. It is also true that since the launch of Operation “Epic Fury” by the United States and Israel against Iran, gold prices initially reacted sharply before easing alongside optimistic statements from President Donald Trump. After hovering around $5,000 per ounce, prices have recently slipped to just above $4,800. Several factors may explain this softness, including central bank responses to the evolving global landscape and some degree of demand fatigue after years of heavy accumulation.

That said, the year began with solid demand from retail investors, ETFs, and central banks. The latest available data show that central banks continued to buy gold in January, albeit at a slower pace, while the pool of buyers expanded. According to the World Gold Council, Bank Negara Malaysia made its first net gold purchase since 2018 (3 tons), while the Bank of Korea is considering resuming gold investments for the first time since 2013. Analysts note that geopolitical uncertainty remains a persistent driver of central bank demand, even if January’s heightened volatility proved an exception.

What happened in January?

• Central banks purchased a net 5 tons, well below last year’s monthly average of 27 tons.
• Buying was led by central banks in Central and East Asia, though Eastern European institutions also increased reserves. Notably, Central Asia saw activity on both sides: Uzbekistan was among the largest buyers (9 tons), while Kazakhstan was a net seller (1 ton). Russia was the largest seller, offloading 9 tons.
• The Bulgarian National Bank (BNB) sold 2 tons of gold, but this decline corresponds to an equivalent increase in the European Central Bank’s (ECB) gold reserves, as Bulgaria joins the European Union as its 21st member.
• The early-year slowdown in central bank gold purchases—compared to the 27-ton monthly average over the past 12 months—may be linked to price volatility and seasonal factors such as the holiday period, which could have given some central bankers pause. Nevertheless, analysts believe that persistent geopolitical tensions are likely to sustain gold accumulation through 2026 and beyond.

It is worth recalling that gold prices reached highs above $5,300 in January. Even so, central bank buying momentum remained resilient despite elevated prices.

Key reported activity in January:

The Central Bank of Uzbekistan purchased 9 tons, extending its buying streak since October. This brought its total gold reserves to 399 tons. The growth has been remarkable, rising from 57% of total reserves in 2020 to 86% in January 2026.

Bank Negara Malaysia emerged as a new buyer, adding 3 tons—its first increase since 2018—bringing total reserves to 42 tons, or 5% of its total reserves.

Other buyers included the Czech Republic (2 tons), Indonesia (2 tons), and China and Serbia (1 ton each).

China’s 15 consecutive months of gold purchases have lifted gold holdings to nearly 10% of its total reserves.