The central bank accelerated its gold purchases again in April!

The central bank has released gold purchase data for April, not only maintaining a trend of increasing holdings for 18 consecutive months but also significantly increasing the amount of gold purchased in April.

In fact, the increase in holdings in March compared to February was already a sharp rise. This time, the amount of gold purchased in April compared to March has reached another level, with a direct addition of 260,000 ounces.

The total increase in holdings for March and April is about 5 times the average of the previous months.

In our analysis of the central bank's gold purchase data for March, we discussed "Central Bank Significantly Increases Gold Holdings in March!" The main reason is still the conflict in the Middle East war in March and April, which led to a tightening of liquidity, causing gold to experience a significant net sell-off at one point. During these two months, the overall gold price fluctuated around $4,000. Combining this with the data on the substantial increase in gold holdings, it can be seen that the central bank likely views the $4,000 level as a reasonable range for the gold price's central position.

In fact, it's not just China's central bank doing this; many central banks globally have been increasing their holdings over the past two years, with the first-quarter increase setting a new high compared to the average quarterly increase last year.

In fact, if we look at the data for 2026, the countries that increased their gold holdings the most also include countries like Poland. Because Poland is also on the front line of the Russia-Ukraine conflict, it remains highly vigilant against possible actions by Russia at any time. Gold, as a strategic asset, is also one of the main reserves it considers.

(Not for investment purposes)

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