China's Central Bank Increases Gold Holdings Amid Geopolitical Uncertainty
China's central bank has continued its gold accumulation streak, adding 8 tonnes to its reserves in April, marking the 18th consecutive month of increase. This brings China's total official gold holdings to 2,322 tonnes, which constitutes approximately 9% of the country's total foreign exchange reserves. The move is part of a broader strategy to diversify away from foreign currency reserves and strengthen gold's role as a strategic asset. Despite a seasonal decline in jewelry demand, investment in gold-backed exchange-traded funds (ETFs) remains strong, with net inflows of RMB 3.5 billion in April. The domestic gold price has stabilized above RMB 1,000 per gram, reflecting sustained investor interest amid geopolitical uncertainties and declining local government bond yields. 
