China’s central bank, the People’s Bank of China (PBoC), continued its gold-buying spree in April, marking the 18th consecutive month of purchases according to the latest data from the World Gold Council (WGC) [1]. In April, the PBoC acquired 8 tonnes of gold, the highest monthly amount since December 2024, bringing its total gold holdings to 2,322 tonnes, which now accounts for approximately 9% of its total reserves [1]. During this period, China was the third-largest gold buyer among central banks, surpassed only by Poland and Uzbekistan [1].
The WGC data also indicates that global central banks resumed net gold purchases in April, reversing the net sales seen in March. The previous month’s sales were attributed to the immediate economic fallout from the Iran war, which led some emerging market sovereigns to sell gold in order to support their currencies [1].
Central bank demand has been a significant driver of gold’s price rally, with the metal nearly doubling in price in 2025. The pace of central bank gold purchases notably accelerated in 2022 after Russia’s foreign reserves were immobilized following its invasion of Ukraine [1]. Gold reached an all-time high of around $5,600 per troy ounce in January but has since declined by about 23%, currently trading near $4,300 [1].
The recent correction in gold prices, which has pushed the metal below its 200-day Simple Moving Average since October 2023, was triggered by a stronger-than-expected US jobs report for May. This report led markets to anticipate upcoming interest-rate hikes by the Federal Reserve, prompting investors to shift from non-yielding assets like gold to interest-bearing assets such as bonds [1].
CONCLUSION
China’s ongoing gold accumulation underscores robust sovereign demand, even as global market dynamics and US monetary policy shifts have recently pressured gold prices. While central bank buying remains a key support for gold, investor sentiment has turned cautious amid expectations of higher US interest rates.