China continues to boost gold reserves in face of trade disputes

China’s central bank sustained its gold accumulation policy, expanding reserves for a sixth consecutive month, according to Bloomberg. In April alone, the People’s Bank of China bought around 70,000 troy ounces of the precious metal, bringing its total gold purchases over the past six months to nearly 1 million ounces (30 tons).

Goldman Sachs analysts highlight unprecedented gold-buying activity by central banks, with purchases rising fivefold since 2022. They argue this surge signals a fundamental shift in global reserve management strategies.

Bloomberg notes that while official gold reserves are growing, households are also flocking to precious metals. Trading volumes on the Shanghai Gold Exchange have reached record levels, prompting Chinese commercial banks to secure additional import quotas. Such a surge in demand, fueled by investor concerns over trade wars, pushed gold prices to a historic high of $3,500 per ounce in April this year.