China’s central bank increased its gold reserves for the seventh consecutive month in May, continuing its strategy to diversify assets despite volatile market conditions.
According to official data released on Saturday, the People’s Bank of China (PBOC) added 60,000 troy ounces of gold last month. This brings the country’s total gold reserves to 73.83 million fine troy ounces.
The latest purchase comes as gold prices remain near record levels. In April, bullion hit an all-time high, driven by steady demand from central banks seeking alternatives to the US dollar. Analysts believe this trend of official buying, including China’s, will continue to support gold prices.
Goldman Sachs estimates that sovereign buyers around the world are currently purchasing about 80 metric tons of gold each month. At current prices, that amounts to roughly $8.5 billion in monthly purchases.
The strong demand for gold is also being fueled by global economic uncertainty. As trade tensions impact financial markets, investors have turned to gold as a safe-haven asset. Although recent signs of easing in global trade disputes have slightly slowed the rally, prices remain elevated.
Meanwhile, China’s foreign-exchange reserves increased slightly to $3.285 trillion in May, up from $3.282 trillion at the end of April. This reflects the country’s cautious approach to managing its foreign assets amid changing global financial dynamics.
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