China’s central bank extends gold-buying streak for seventh month

China’s central bank expanded its gold reserves for a seventh straight month in May, furthering its bid to diversify holdings despite ongoing price fluctuations.

The People’s Bank of China added 60,000 troy ounces of the metal to its reserves last month, taking the total to 73.83 million fine troy ounces, according to data released Saturday.

Bullion climbed to a record in April, supported by concerted central-bank buying as authorities seek to diversify holdings away from the US dollar. Such purchases, including those by the PBOC, are seen as key support for prices going forward.

Globally, sovereign players are adding around 80 metric tons of gold a month, worth about $8.5 billion at current prices, analysts at Goldman Sachs Group Inc. estimate.

Gold’s upswing has also been aided by investors’ flight to havens as the trade war rattles financial markets and raises concern about US assets. While the rally has cooled slightly amid some easing of global trade tension, bullion remains near historic highs.

China’s foreign-exchange reserves rose to $3.285 trillion in May from $3.282 trillion at the end of April.

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