PBoC Adds Gold Reserves Again, Consistently Buys While Other Central Banks Sell
China's central bank added gold reserves again in March, extending its record buying streak to 17 consecutive months, even as other central banks reduced their holdings of the precious metal. Data from the People's Bank of China (PBoC) showed that official gold reserves rose to 74.38 million troy ounces at the end of March from 74.22 million troy ounces at the end of February.
This accumulation trend occurred as the gold market faced volatility influenced by geopolitics and the direction of global interest rates. Meanwhile, several central banks moved in the opposite direction: the World Gold Council noted that Turkey and Russia were among those experiencing the largest declines in gold reserves in February. Domestic market pressures also prompted Ankara to tap into reserves, with Reuters previously reporting a sharp decline in Turkish gold reserves during the turbulent period.
For the market, the PBoC's purchases reinforced the narrative that central bank demand remains a structural support for gold, especially as monetary authorities seek to diversify reserves and hedge against geopolitical risks and currency volatility. The main transmission framework: stable official demand tends to increase the long-term "bid" for gold, while reducing price sensitivity to short-term speculative flows.
Going forward, market participants will monitor the pace of PBoC accumulation, the direction of buying/selling by other central banks, the dynamics of the dollar and real yields, and the intensity of geopolitical risks that could alter hedging patterns and the composition of foreign exchange reserves.
Source: Newsmaker.id
