For the first time in 10 months, central banks collectively became net sellers of gold in March 2026, marking a notable shift in a market where sovereign buying has been one of the steadiest sources of support during gold’s multi-year rally. According to the latest data from the World Gold Council (WGC), central banks sold a net 30 tonnes of gold in March. The reversal was driven primarily by large sales from Turkey and Russia, which outweighed continued buying from countries such as Poland, Uzbekistan, Kazakhstan, and China. Marissa Salim, Senior Research Lead for Asia-Pacific at the WGC, said that “central banks sold a net 30t of gold in March, with sales from Turkey (60t) and Russia (16t) offsetting purchases elsewhere.” She also noted that quarterly data from the State Oil Fund of Azerbaijan (SOFAZ) showed net sales of 22 tonnes in the first quarter of 2026.
The March figures are significant because the official sector has been a major pillar of gold demand in recent years. Central banks have helped underpin bullion prices by steadily increasing reserves, particularly as geopolitical tensions, inflation risks, and concerns over the U.S. dollar have encouraged diversification. That pattern did not disappear entirely in March, but it became more fractured. While some central banks remained committed buyers, others moved to monetize holdings in response to acute domestic and geopolitical pressures.
Turkey accounted for the largest share of the sales. WGC data showed that the country’s official sector gold holdings fell by 79 tonnes in the first quarter, with the bulk of that decline occurring in March. The central bank used an additional 80 tonnes through gold swaps during the month. Turkey’s actions reflect a more active use of gold reserves than is typical among central banks. Rather than treating gold solely as a passive long-term asset, Ankara has deployed it as a macro-financial buffer to secure U.S. dollar liquidity and stabilize domestic markets.
In March, Turkey opened roughly 73 tonnes worth of gold swap positions, while also selling some bullion outright. These moves were aimed at countering accelerating capital outflows, rising domestic demand for foreign currency, and pressure on the Turkish lira. The liquidity obtained through swaps and sales was used to support the currency and broader economy. Before the outbreak of the Iran war, Turkey’s central bank held nearly 830 tonnes of gold. By the end of March, that figure had fallen by 127 tonnes to 693 tonnes, representing the sharpest drawdown in the country’s reserves since 2013. Reports indicate that more than 118 tonnes were lost in March alone.
However, the selling appears to have been temporary rather than structural. Following the ceasefire between the United States and Iran, market conditions stabilized, and pressure on Turkish assets eased. As a result, Turkey’s central bank has already begun rebuilding its reserves. The latest government data show that Turkey increased its gold holdings by 30.7 tonnes in one week, bringing the total two-week increase to 36.4 tonnes. Physical holdings had risen to around 730 tonnes as of April 17, suggesting that the central bank is unwinding some of its earlier dollar-for-gold swap positions.
Russia was the second major contributor to the March reversal. While some reports cite conflicting figures, the WGC data cited by Salim indicate that Russia sold 16 tonnes during the month. Other reports put the figure at 6 tonnes, but in either case, Russia was one of the key sources of net supply.
Analysts say Russia’s gold sales were likely intended to inject liquidity and help cover budget deficits, underscoring a broader theme: under economic stress, some countries are increasingly willing to use gold reserves actively rather than hold them. Azerbaijan also moved to the supply side. The State Oil Fund of Azerbaijan reported net sales of 22 tonnes in the first quarter of 2026, adding to evidence that some sovereign institutions are monetizing bullion amid changing financial conditions.
Despite the net selling in March, central bank demand did not vanish. Several countries continued to add meaningfully to reserves, extending a broader diversification trend that has been in place since 2024. Poland was the largest buyer in March, adding 11 tonnes. Uzbekistan followed it with 9 tonnes and Kazakhstan with 6 tonnes. China’s central bank added another 5 tonnes, extending its gold-buying streak to 17 consecutive months. Guatemala and the Czech Republic also bought 2 tonnes each.
Every quarter, Poland remained the biggest buyer, purchasing 31 tonnes in the first quarter. Uzbekistan followed with 25 tonnes, Kazakhstan added 13 tonnes, and China purchased 7 tonnes. Other countries reporting net buying of at least one tonne included the Czech Republic, Malaysia, Guatemala, Kyrgyzstan, Cambodia, Indonesia, and Serbia. Poland’s continued accumulation stands out in particular. Its central bank has been steadily increasing its gold reserves for more than three years and remains one of the world’s most aggressive sovereign buyers.
The broader backdrop to March’s reversal is the worsening global economic strain linked to the war between Iran and Israel and its spillover effects across the Middle East. Disruptions to energy markets and global supply chains have added inflationary pressure and increased volatility in foreign exchange and capital flows.
For countries facing acute stress, gold has become a usable reserve asset rather than just a symbol of monetary stability. Turkey is the clearest example of this shift: it sold and swapped gold to obtain dollars and support the lira during a period of severe market pressure. This dynamic has made central bank activity more volatile. The official sector remains important to the gold market, but sovereign demand is no longer a one-way story of steady accumulation. Some countries are still building strategic reserves, while others are temporarily liquidating gold to manage crises at home.
March’s net selling does not necessarily signal the end of central bank support for gold. In fact, the quarter’s buying data show that many countries remain committed to increasing reserves, especially those seeking to diversify away from traditional reserve currencies. Still, the March numbers are a reminder that central bank behavior can shift quickly when economic or geopolitical stress intensifies. Gold remains both a strategic reserve and, in some cases, an emergency source of liquidity.
That dual role may define the next phase of the market. As long as geopolitical tensions remain elevated and inflation and currency risks persist, central banks are likely to remain major players in the gold market. But their participation may become less predictable, with some buying for long-term security while others sell or swap holdings to weather immediate shocks. In that sense, March 2026 may be remembered not as the end of sovereign gold demand, but as a sign that central banks are becoming more tactical in how they use one of the world’s oldest reserve assets.