China’s Central Bank Continues Gold-Buying Streak For 17th Consecutive Month

(April 7, 2024 - Nada Ali, Banks Feature International News)

China’s central bank persistently bolstered its gold reserves for the 17th consecutive month in March, contributing to the remarkable surge in the precious metal’s value, which recently hit an all-time high, Bloomberg reported on Sunday.

People’s Bank of China (PBC) now holds an impressive 72.74 million fine troy ounces of gold bullion, Bloomberg cited official data.

The surge in gold prices over the past two months has been fueled by anticipations of lower US interest rates, prompting a series of record-breaking milestones.

Notably, the central bank purchases have played a pivotal role in supporting gold’s strength since 2022.

Globally, central banks—led by China and India—have consistently expanded their gold reserves.

February marked the ninth consecutive month of growth in this trend, as reported by the World Gold Council.

China’s official reserve assets have reached their highest level since November 2015.

By the end of March, the country’s foreign exchange reserves stood at a staggering $3.2457 trillion, the highest figure since December 2021.

The central bank’s strategic goal is to maintain stable holdings, thereby mitigating risks.

These reserves increased by 0.6 per cent from February and showed a 1.9 per cent year-on-year growth.

As global economic dynamics continue to evolve, China’s gold accumulation remains a significant factor in shaping the precious metal market.