Even after gold got hammered last month, China continued buying.
The People’s Bank of China kept buying gold, continuing its streak to 17 straight months in March, according to Reuters. It grew its reserves, even as the metal posted its steepest monthly drop since 2008.
In a market that’s typically filled with a ton of fear, that sort of steady demand stands out.
To be fair, that isn’t the usual script for the shiny yellow metal.
Gold is almost always the asset investors gravitate towards when war risk rises, and the markets get nervous.
However, the Iran war scrambled the usual trade, reviving inflationary pressures, stoking growth fears, and ultimately compelling investors to rethink interest rate cuts.
Speaking of rate cuts, veteran economist Jeremy Siegel now believes rate hikes may be warranted, given the current economic backdrop.
That combination hit gold hard, dragging down the value of Beijing’s reserves, making its latest move all the more interesting.
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Gold: 30 days: -6.35%, 6 months: +16.55%, 1 year: +48.01%, 5 years: +174.82%
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Silver: 30 days: -10.20%, 6 months: +47.08%, 1 year: +136.10%, 5 years: +201.89%, 20 years: +497.31%
Source: GoldPrice.org
Gold entered 2026 on a tear.
It blasted out of the gates, setting new records as early as January, and was tracking up by nearly one-fifth early in the year after a monster 2025.
That tremendous rally was supercharged by safe-haven demand, de-dollarization, healthier ETF inflows, strong central-bank accumulation, and tariff worries.
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However, when the Iran war hit, that easy narrative lost steam.
Higher energy prices stoked inflationary pressures, and traders were quick to price in fewer near-term interest rate cuts
Consequently, we saw a steep March sell-off (the biggest monthly drop in years), where the king metal slid from record highs back to the mid-$4,000s.
However, despite the pressures, gold hasn’t cracked.
With China still loading up, the dollar easing at times, and ceasefire headlines cooling off the relentless momentum in the commodity markets, gold has bounced back into the high-$4,700s.
The People’s Bank of China bumped its gold holdings to 74.38 million fine troy ounces at the end of March, up from 74.22 million in February.
That came at a point when the value of those holdings effectively dropped to $342.76 billion from $387.59 billion, the first monthly drop in reserve value since May 2025.
