Data from the central bank shows that as of the end of April, China's gold reserves stood at 74.64 million ounces, an increase of 260,000 ounces compared to the previous month. This marks the 18th consecutive month of growth, with the scale of purchases expanding further from the prior month. An analysis suggests that the decline in international gold prices for the second straight month in April may have been a direct factor prompting the central bank to accelerate its gold acquisitions. In March 2026, international gold prices experienced their most severe monthly drop since the 2008 financial crisis, plunging by 11.54%, the largest single-month decline in nearly 17 years. Prices saw a further slight decrease of 1.02% in April 2026. It is noted that although gold prices are at historically high levels, the necessity to increase gold holdings has risen from the perspective of optimizing the structure of international reserves. As of the end of April, gold reserves accounted for approximately 9.1% of China's official international reserves, which are primarily composed of foreign exchange and gold reserves. This figure is significantly lower than the global average of around 15%. Overall assessment indicates that continued increases in gold reserves by the central bank remain the general trend.
Data from the World Gold Council shows that global central bank gold purchases accelerated significantly in the first quarter. Against a backdrop of heightened volatility in global markets, central banks continued to expand their gold reserves, with net purchases reaching 244 tonnes. This figure is not only higher than the 208 tonnes purchased in the fourth quarter of last year but also represents the highest quarterly level in over a year. A chief strategist commented that following a prolonged period of gains, the significant correction in international gold prices has provided a window of entry for previously观望 central banks, prompting concentrated buying. The CEO of the World Gold Council China region stated that global central banks' increased gold purchases are not based on short-term profit-taking from price increases but are instead part of a longer-term perspective on gold allocation.
One futures company expressed the view that precious metals (gold and silver) will experience volatile consolidation in the short term, but upside potential is limited, cautioning about uncertainties stemming from US-Iran negotiations and recurring tensions in the Strait. Short-term gains in precious metals are primarily influenced by rising expectations for US-Iran peace talks, a retreat in the US dollar and oil prices, and easing inflation concerns, which have driven prices higher. Subsequent attention should focus on the evolution of geopolitical situations and the guidance provided to market expectations by the non-farm payrolls data due on May 8.
Another major institution stated that the core driver of international gold prices has currently shifted from safe-haven demand to the trajectory of Federal Reserve monetary policy and real yield movements. It maintains its forecast for international gold prices to rise to $5,200 per ounce by year-end. Simultaneously, renewed expectations for future interest rate cuts are also expected to provide further upside potential for international gold prices.
A securities firm maintains its view of short-term volatility but long-term optimism for gold. In the short term, gold prices are influenced by policy expectation fluctuations following the inauguration of the new Fed Chair, combined with geopolitical risks in the Strait of Hormuz, leading to an overall pattern of range-bound volatility. However, the fundamental logic for long-term allocation has not changed. On one hand, global central banks, as core allocators of gold, continue to maintain a net purchasing trend, providing solid demand support. On the other hand, the trend of marginal weakening in US dollar credibility persists, and the process of international monetary system diversification is accelerating. Additionally, the sustainability and stability of the petrodollar system face uncertainties, and the future operation and restructuring path of this system remain variable, further strengthening gold's long-term value as a safe-haven and reserve asset.
Related concept stocks: Zijin Gold Intl (02259): For the three months ended March 31, 2026, the group achieved gold production of 13.46 tonnes (including 601 kg of equity production from the Porgera Gold Mine). The newly acquired Akyem Gold Mine in Ghana and the Reko Diq Gold Mine in Kazakhstan, acquired in 2025, began to gradually contribute incremental production. For the three months ended March 31, 2026, the group realized revenue of $2.057 billion and a profit attributable to owners of the parent company of approximately $807 million.
Chifeng Gold (06693): For the first quarter of 2026, the company reported operating revenue of RMB 3.554 billion, a year-on-year increase of 47.65%. Net profit attributable to shareholders of the listed company was RMB 988 million, a year-on-year increase of 104.43%. Basic earnings per share were RMB 0.52.
SD GOLD (01787): In 2025, the company's revenue was approximately RMB 104.287 billion, an increase of about 26.38% compared to the same period last year. Net profit attributable to shareholders of the parent company was approximately RMB 4.739 billion, an increase of about 60.57% year-on-year. The board recommended a final dividend for the year ended December 31, 2025, of RMB 0.18 per share (before tax).
ZHAOJIN MINING (01818): In 2025, the company achieved revenue of RMB 18.056 billion, a year-on-year increase of 56.32%. Profit attributable to shareholders was RMB 3.614 billion, a year-on-year increase of 149.1%. Basic earnings per share were RMB 0.96. A cash dividend of RMB 0.1 per share was proposed.