China's central bank maintained its steady accumulation of gold in April, marking the 18th consecutive month that official reserves have been increased, according to data published by the People's Bank of China.
By the end of April, China's gold holdings stood at 74.64 million fine troy ounces, up from 74.38 million ounces reported at the close of March. Valued in dollar terms, the nation's gold reserves rose to $344.17 billion at the end of April, compared with $342.76 billion the previous month.
The rise in the dollar value of the reserves represents a rebound following the first monthly decline in recent months recorded in March, which was attributed to a sharp fall in global gold prices.
Market dynamics in April saw spot gold register a second consecutive monthly decline as the metal came under pressure from concerns that higher oil prices associated with the Iran war could keep inflation elevated and prompt central banks to postpone rate cuts. Those downward pressures on bullion eased toward the latter part of the month, however, when the dollar softened and crude oil prices retreated, supporting a late-month recovery in the metal.
While the People's Bank of China did not provide commentary beyond the headline reserve figures, the sequential increases in both ounces held and dollar valuation in April continued a long-running trend of official buying. The numbers reflect the reported gross quantities and valuations supplied by the central bank for the end of the month.
Observers tracking reserve positions will note that the March dip in value was linked in official explanations to a steep fall in gold prices. The April data show both a modest increase in physical holdings and a higher headline dollar valuation compared with March.
Given the data released, the April report highlights two concurrent developments: continued accumulation of metal in physical terms and a market environment that shifted from price weakness earlier in March to some recovery late in April as currency and crude price moves supported bullion.
Contextual note: The figures above are the official reserve totals and dollar valuations reported by the central bank for the end of April and March. The market pressures and late-month recovery referenced are those described in the release accompanying the reserve numbers.