People’s Bank of China extends gold buying streak

The People’s Bank of China has increased its gold reserves for a 19th consecutive month in May, continuing a prolonged accumulation strategy even as bullion prices remain under pressure.

The central bank added 320,000 troy ounces to its holdings, extending the longest uninterrupted buying streak since at least 2015, when more regular reserve disclosures began, News.Az reports, citing Yahoo Finance.

Gold prices declined in May, marking a third consecutive monthly loss after reaching a record high in late January.

The metal has been weighed down by persistent inflation concerns and expectations that interest rates may remain elevated for longer, reducing demand for non-yielding assets.

Despite this, central bank purchases have continued to provide support to the global gold market, offsetting weaker investor demand and volatility.

China’s reserve accumulation reflects ongoing efforts to diversify holdings away from traditional reserve assets, as geopolitical uncertainty and reserve management strategies increasingly shape global demand.

Analysts, including Goldman Sachs, have suggested that central bank gold buying could accelerate further amid geopolitical developments and broader diversification trends.

News.Az 

By Leyla Şirinova