Gold prices are down about 12.5% since the start of April. But global central banks have been increasing their reserves of the yellow metal.
A new report from the World Gold Council shows that central banks bout 109 tonnes of gold in the first quarter.
This was the seventh straight quarter in which they purchased over 100 tonnes of gold.
Central banks held 31,735.4 tonnes of gold as of May 2013. This was up from 31,694.8 tonnes as of April 2013.
According to the WGC, Russia and South Korea were among the biggest buyers of gold.
“The price drop in April, fuelled by non-physical moves in the market, proved to be the catalyst for a surge of buying that has left many retailers short of stock and refineries introducing waiting lists for deliveries," said Marcus Grubb managing director at World Gold Council in a press release. "Putting this into context, sales of bars and coins, jewelery and consumption in the technology sector still make up 81% of the market.
"What these figures show is that even before the events of April, the fundamentals of the gold market remain robust with; growing demand in India and China, central banks consistently adding gold to their reserves and strong buying of investment products such as gold bars and coins."
Overall global demand for gold fell 19% on the quarter in Q1 to 963 tonnes.
More From Business Insider