Beijing: The People's Bank of China has increased its gold reserves for the seventh consecutive month in May, continuing its strategy to diversify its holdings amidst ongoing price fluctuations. The central bank's persistent accumulation of gold highlights a significant shift in reserve management practices.
According to Yemen News Agency, official data disclosed on Saturday showed that the People's Bank of China added approximately 60,000 troy ounces of gold to its reserves last month, bringing the total holdings to 73.83 million troy ounces. This move is part of a broader trend among central banks worldwide to diversify their assets away from the US dollar.
Bullion prices reached unprecedented levels in April due to synchronized purchasing by central banks, including the People's Bank of China. These acquisitions have been instrumental in driving the rising prices of gold. Globally, sovereign entities are adding roughly 80 metric tons of gold monthly, valued at about $8.5 billion at current rates, as reported by Goldman Sachs analysts.
The rally in gold prices has also been spurred by investors gravitating towards safe-haven assets amid financial market instability, exacerbated by the trade war and increasing apprehensions about U.S. assets. Although the rally's pace has moderated slightly following some easing of global trade tensions, gold bullion remains close to its peak levels.
Simultaneously, China's foreign exchange reserves saw an increase, rising to $3.285 trillion in May from $3.282 trillion at the end of April.