The People's Bank of China has continued to purchase gold for its reserves for the 17th consecutive month, as prices plummet due to the ongoing conflict with Iran.
April 7, 2569 at 15.36:XNUMX, Bloomberg reported that The People's Bank of China continued to purchase gold for its reserves in March, reflecting strong demand for gold as a safe-haven asset. Despite facing pressure on gold prices from the Iran-Iran conflict,
Data from the People's Bank of China (PBOC). specify that Gold reserves increased by 160,000 ounces in March, marking the 17th consecutive month of accumulated purchases, with China being one of the world's largest central banks in terms of gold purchases.
However, gold prices fell by 12% in a single month, their sharpest monthly decline since 2551, as conflict in the Middle East strengthened the US dollar and led to market expectations that the Federal Reserve might be hesitant to cut interest rates if inflation rose again. These factors, along with selling pressure from investors seeking to offset losses in other assets, pressured gold prices.
Despite price volatility, China's central bank's purchases of gold have helped boost market confidence, especially during periods when some countries began selling gold, such as the Turkish central bank which sold and traded approximately 60 tons of gold, worth over $8,000 billion, to support the lira.
Overall, gold purchases by central banks worldwide remain a key driver of markets, increasing significantly following the Russia-Ukraine war in 2565. Many emerging economies have therefore increased their gold holdings to reduce their dependence on US dollar-denominated assets.
This World Gold Council Evaluate that In the first two months of the year, central banks worldwide purchased a net 25 tons of gold, with the Central Bank of Poland being one of the largest buyers, having already purchased 20 tons in February.
refer : www.bloomberg.com
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