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Chinese central bank has been buying Gold for six months – Commerzbank

The Chinese central bank PBoC continued to buy Gold in April for the sixth month in a row, Commerzbank's commodity analyst Carsten Fritsch notes.

PBoC Gold purchases are lower than in the previous month

"The PBoC's Gold reserves rose by 70 thousand ounces, or just over 2 tons, month-on-month. This means that purchases were once again lower than in the previous month, when the PBoC bought just under 3 tons of Gold. In January and February, monthly purchases were still at 5 tons, in December at just over 10 tons."

"Since the PBoC resumed its Gold purchases last November, these have totalled 970 thousand ounces or just over 30 tons. In the past, the PBoC had already bought such a quantity of Gold within a month, for example in November and December 2022. The current purchases are therefore not comparable with those of that time."

"The decline in buying interest could be linked to the sharp rise in the Gold price. However, there may also have been unreported Gold purchases. For around three years, there has been a large discrepancy between the Gold purchases of central banks reported by the World Gold Council and the Gold purchases reported in the reserves of central banks."

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FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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