China has increased its gold reserves for the sixth consecutive month in April, according to a report from the People's Bank of China released on Wednesday.
In the past 6 months, China has added about 30 tons of gold, although gold prices have increased by nearly 30% this year and have continuously hit new peaks.
Krishan Gopaul - senior analyst at the World Gold Council said: "Date from the People's Bank of China shows that the country's gold reserves increased by 2 tons in April, bringing the total net purchases since the beginning of the year to 15 tons and total reserves to 2,294 tons".
Ross Norman - CEO of Metals Daily commented to Bloomberg: "Recent purchases have not been large, showing that China will continue to buy but only when the price is reasonable.
It is likely that the People's Bank of China will continue to hoard gold as it gradually withdraws from US dollar-denominated assets such as US government bonds, the expert said.
Notably, Poland - the country that bought the most gold last year - still maintains an impressive buying rate. Krishan Gopaul shared: The Polish Central Bank reported increasing its gold reserves by 12 tons in April, bringing the total reserves to 509 tons. Since the beginning of the year, Poland has purchased 61 tons - accounting for 2/3 of the total net purchases in 2024 (90 tons).
Meanwhile, the Czech Republic continues to add gold to its reserves. The Czech National Bank reported an additional 2.5 tonnes of gold in April, bringing its total purchases for 26 consecutive months to 47 tonnes. As of the end of April, total gold reserves reached nearly 59 tons, said Gopaul.
According to the WGC's most recent quarterly gold demand trend report, central banks' gold purchases are still a solid pillar of the market, despite falling compared to last year's record level. Central banks have purchased 243.7 tonnes of gold between January and March this year, down 21% year-on-year (309.9 tonnes).
The WGC assessed: Although lower than the previous quarter, this figure is still 24% higher than the 5-year average and only 9% lower than the average of the previous 3 years - which is already very high. The buying trend has now extended into the 16th year.
Experts say: "In the context of high uncertainty, the role of gold as an important component of foreign exchange reserves will be maintained, continuing to support demand in the coming time".
