China increases gold reserves

China increased its gold reserves for a sixth straight month as central banks around the world expanded their bullion holdings amid rising geopolitical and economic risks. China increased its gold stockpile by about 8.09 tonnes in April, data from the State Administration of Foreign Exchange showed on Sunday. The country’s total stockpile now stands at about 2,076 tonnes after adding about 120 tonnes to its reserves in the five months to March. Central banks have bought large amounts of gold over the past year to diversify their holdings and protect reserves from the effects of a weak dollar and rampant inflation. While inflows are likely to moderate in the first quarter of 2023, volumes are still at historically high levels, according to the World Gold Council. Singapore, China and Turkey were among the biggest buyers. Appetite for gold has helped push prices to near-record levels as markets fret over a slowing U.S. economy and persistent credit stress. Geopolitical risks from increasingly fractious Sino-American relations are also boosting bullion’s safe-haven appeal.