Beijing - Saba:
The People's Bank of China continued to increase its gold reserves for the seventh consecutive month in May, as part of its efforts to diversify its holdings despite ongoing price fluctuations.
Official data released Saturday revealed that the People's Bank of China added approximately 60,000 troy ounces of the precious metal to its reserves last month, bringing its total holdings to 73.83 million troy ounces.
Bullion prices reached a record high in April, driven by a coordinated buying spree by central banks as authorities seek to diversify their holdings away from the US dollar. These purchases, including those by the People's Bank of China, are a key factor in the continued rise in prices.
Globally, sovereign entities are adding approximately 80 metric tons of gold per month, worth approximately $8.5 billion at current prices, according to Goldman Sachs analysts.
Gold's rally also benefited from investors' shift toward safe-haven assets amid heightened financial market turmoil due to the trade war and rising concerns about U.S. assets. Although the rally has slowed slightly due to some easing of global trade tensions, gold bullion remains near its all-time high.
In parallel, China's foreign exchange reserves rose to $3.285 trillion in May, compared to $3.282 trillion at the end of April.