(Yicai) April 28 -- Spot gold prices in London have been fluctuating around USD4,700 per ounce in recent sessions as the world’s central banks, once bullish big buyers of the precious metal, begin to diverge in their strategies, adding a new layer of uncertainty to the market.

International gold prices surged to a record high of USD5,600 per ounce earlier this year before plummeting sharply and entering a period of heightened volatility. As of April 27, the London spot gold price was trading around USD4,708 per ounce.

Prices in the precious metals market are supported by central bank gold demand, Xia Yingying, head of the Precious Metals and New Energy Research Group at Nanhua Futures, told Yicai. However, recently, trading has been affected by ongoing uncertainty arising from repeated regional conflicts in the Middle East, inflation concerns tied to high oil prices, expectations around US Federal Reserve monetary policy and leadership changes, as well as economic stagflation, recession and risks in the financial market,

The resulting growing divergence among central banks has added to market uncertainty.

The Central Bank of Türkiye has started rebuilding its gold reserves, after selling off nearly 15 percent of its holdings in March. The latest data shows that the central bank added 30.7 tons of gold in the week ended April 17 and over the past two weeks, total purchases have reached 36.4 tons, bringing the central bank's holdings back up to about 730 tons. Whereas in March, amid accelerating capital outflows and rising demand for foreign currency, Türkiye’s central bank sold 118.4 tons of gold over a two-week period, slashing its reserves to 702.5 tons. 

The State Oil Fund of the Republic of Azerbaijan, another major gold buyer, has trimmed the share of gold in its investment portfolio to 35.6 percent from 38.2 percent at the end of last year, according to its first-quarter report released on April 23. In terms of holdings, the fund sold 22.1 tons of gold in the first three months, lowering its holdings to 178.1 tons.

Other big buyers are taking a wait-and-see approach. The Swiss National Bank, the country’s central bank, has chosen to keep its position unchanged. Chairman Martin Schlegel said at a recent shareholders’ meeting that the Zurich-based bank currently has no plans to hike or cut its gold holdings.

The Swiss National Bank holds 1,040 tons of gold, with 70 percent stored within Switzerland. Gold contributed significantly to its profits from investments last year, and holding a certain proportion of gold remains reasonable from a diversification perspective, Schlegel said.

Long-Term Demand

However, analysts say that although some countries in the Middle East are likely to keep selling gold in the near term to raise cash, putting pressure on prices, long-term investor demand for gold is expected to remain strong.

Some countries in the Middle East are still selling gold to raise cash in the short term, making it unlikely that gold will return to USD5,000 per ounce quickly, Deng Zhijian, senior investment strategist at Singaporean lender DBS Bank’s China arm, told Yicai.

However, in the medium- to long-term, demand for gold will remain strong, he added. COMEX gold futures pricing remains above USD4,800 per ounce, and contracts that expire in September next year are already above USD5,000 per ounce.

Overall, global central banks remain in a net buying position. Central banks made net purchases of 19 tons of gold in February, according to the World Gold Council’s Central Bank Gold Purchasing Monthly Report for February 2026. This is below the 2025 monthly average of 26 tons reported, but an increase from just five tons in January.

Editor: Kim Taylor