The price of a 500-gram investment gold bar is now approaching 600,000 yuan in retail stores. This type of gold asset continues to be a major purchase target for China's central bank. Data released on April 7 shows that the central bank has increased its gold holdings for 17 consecutive months. By the end of March 2026, China's gold reserves had reached 74.38 million ounces, with purchases in March alone totaling 160,000 ounces.
Why has the central bank consistently added to its gold reserves for 17 months? This sustained action has sparked widespread attention and interpretation within the industry regarding the market signals it sends.
Zhu Zhigang, Supervisor of the Guangdong Gold Association and Chief Gold Analyst, stated in an interview that the central bank's ongoing gold purchases provide strong support for the bullish trend in the gold market. He noted that this significantly boosts market confidence in gold's future price movements, especially regarding price volatility.
Zhu Zhigang analyzed that previous strikes by the US and Israel against Iran directly led to a sharp rise in international oil prices. This, in turn, heightened global inflation expectations and strengthened the US dollar. Since gold typically has an inverse relationship with the US dollar, the market widely anticipated a rise in gold prices at that time, but the actual market movement was a contrary decline.
"With the cessation of related military actions, following the previous market logic, international gold prices are expected to gradually recover in the subsequent period," Zhu Zhigang added.
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