China’s Central Bank Continues Gold Buying Streak as Monthly Purchases Slow

China’s central bank, the People’s Bank of China (PBoC), extended its streak of gold purchases for a sixth consecutive month, adding 70,000 ounces (just over 2 tonnes) to its official reserves in April. While the continued accumulation signals Beijing’s ongoing interest in holding physical gold, the April figure also continues a clear downward trend in monthly reported purchases after a heavier buying pace late last year and earlier this year.

Reported monthly additions have fallen from more than 10 tonnes in December to around 5 tonnes in both January and February, nearly 3 tonnes in March, and now just over 2 tonnes in April. Since the resumption of public reporting last November, the PBoC has announced a cumulative purchase of 970,000 ounces—roughly 30 tonnes—over that period. Although that total is substantial, it is modest compared with some previous episodes when central bank buying matched or exceeded that volume within a single month.

This pattern of tapering monthly additions raises several questions for market participants and observers tracking central bank behaviour. One possibility, highlighted by Commerzbank analyst Carsten Fritsch, is that stronger gold prices have reduced the pace at which the PBoC is willing to add to reserves. When bullion becomes more expensive, incremental purchases can become costlier, prompting a central bank to slow reported buying to manage price risk and acquisition cost.

Another explanation Fritsch notes is that some acquisitions may not have been disclosed in official releases. Central banks occasionally adjust their disclosure practices for operational or strategic reasons; unreported transactions would mean the published monthly figures understate actual additions to China’s gold holdings. Both possibilities—slower buying because of higher prices or partial reporting—carry different implications for market interpretation of China’s reserve strategy.

For investors, analysts and policymakers, changes in the tempo of PBoC gold purchases are closely watched because China is a major influence on global demand dynamics. Central bank buying can support bullion prices and signal longer-term intentions to diversify foreign exchange reserves away from currencies and toward tangible assets. At the same time, a visible slowdown in reported purchases may ease short-term price pressure on the market and prompt reassessment of near-term demand expectations.

It is important to read the PBoC’s reported figures alongside broader trends: official data, private-sector trade flows, refining and import statistics, and market commentary. Together these sources help build a fuller picture of how much physical gold is moving into Chinese hands and whether official reserve accumulation is accelerating, stabilizing, or slowing.

In sum, April’s modest addition to China’s gold reserves continues a multi-month streak of purchases but also underscores a deceleration in reported monthly buying. Observers will likely watch forthcoming reports for confirmation of whether this represents a temporary pause driven by market prices, a strategic shift in reserve management, or simply a timing or reporting variation that masks larger, unannounced acquisitions.