The Chinese Central Bank Continues to Buy Gold Amid Ongoing Price Pressures

SadaNews - The Chinese central bank continued to increase its gold holdings in May, as prices of the precious metal remained under pressure.

Gold holdings at the People’s Bank of China rose by 320,000 troy ounces during the past month, according to data published on Sunday. This extends the bank’s purchasing streak to 19 consecutive months, the longest since at least 2015 when the central bank began publishing more regular updates on its gold reserves.

Central Banks Continue Purchasing

Gold prices slightly decreased in May, marking the third consecutive monthly decline after reaching a record high in late January. Ongoing concerns about inflation and expectations of persistently high interest rates, due to the war in the Middle East, negatively impacted the attractiveness of non-yielding assets.

Central bank purchases globally have been one of the key supporting factors for gold prices in recent years. Last month, Goldman Sachs stated that it expects the pace of these purchases to accelerate, with geopolitical developments likely to drive central banks towards diversifying their reserves.