China’s PBOC adds gold again as bullion remains under pressure

China’s central bank extended its gold-buying streak in May, adding to holdings as prices of the precious metal remained under pressure.

Bullion held by the People’s Bank of China rose by 320,000 troy ounces last month, according to data released on Sunday. The latest addition extended its buying streak to 19 months, the longest since at least 2015, when the PBOC began publishing more regular updates on its gold reserves.

Gold edged lower in May, marking a third consecutive monthly decline after it hit a record in late January. Persistent inflation concerns and expectations for higher-for-longer interest rates triggered by the war in the Middle East have weighed on the appeal of non-yielding assets.

Global central-bank purchases have been a key pillar of support for bullion in recent years. Goldman Sachs Group Inc. said last month it expects the buying to be stepped up as geopolitical developments are likely to reinforce a push to diversify reserves.

(By Jessica Zhou)