China’s central bank adds more gold to its reserves in April

CHINA’S central bank added 60,000 troy ounces of gold to its reserves in April, official data showed on Tuesday (May 7), extending the period of consecutive purchases to 18 months despite high gold prices.

Safe-haven demand, driven by geopolitical and economic uncertainty as well as persistent central bank buying, contributed to a rally in gold in March-to-April period, with spot gold prices hitting a record of US$2,431.29 per ounce on Apr 12.

China held 72.80 million ounces of gold at the end of April, up from 72.74 million ounces a month before, the data showed. The value of China’s gold reserves rose to US$168 billion from US$161.1 billion.

Demand from global central banks for gold has been elevated for two years, supporting prices.

The World Gold Council (WGC) expects global central banks to slow purchases in 2024 compared to last year’s 1,037.4 tonnes but to keep them higher than they were before 2022.

The People’s Bank of China was the largest official sector buyer of gold in 2023 with net purchases of 7.2 million ounces, or 224.9 tonnes, according to the WGC, the most for a single year since at least 1977. REUTERS