People's Bank of China Continues Gold Accumulation Amid Global Economic Uncertainty
The People's Bank of China (PBOC) has continued its gold accumulation strategy, adding 8 tonnes to its reserves in April. This marks the 18th consecutive month of increase, bringing total official gold holdings to 2,322 tonnes. This move is part of a broader strategy to diversify away from foreign currency reserves and strengthen gold's role as a strategic asset. Concurrently, Chinese gold-backed exchange-traded funds (ETFs) have seen net inflows for the eighth consecutive month, totaling RMB 3.5 billion (approximately USD 498 million) in April. Despite a slowdown in inflows due to a rally in domestic equities, investor interest in gold remains strong amid ongoing geopolitical uncertainty and declining local government bond yields. However, physical gold demand, particularly in the jewelry sector, has declined due to seasonal patterns and shifting consumer behavior towards services and travel. 
