China’s Central Bank Extends Gold Buying Streak to 17 Months as Prices Stabilize

On April 7, 2026, gold prices edged higher in early trading as dip-buying emerged following the Easter holiday, though gains remained capped by a firm U.S. dollar and elevated oil prices. Gold spot price is trading at $4,655.89 per ounce, up $9.29 (+0.20%) on the day. Silver spot price is trading at $72.12 per ounce, down $0.66 (-0.90%) on the day. The gold-to-silver ratio stands at 64.6, reflecting gold’s relative strength in the current environment. Key catalyst: investors remain focused on the uncertain course of the U.S.–Israel conflict with Iran, as Trump’s deadline for potential military action approaches. Gold has fallen approximately 12% since hostilities began, as elevated oil prices stoke global inflation concerns—pressuring the non-yielding metal despite its traditional safe-haven role.

Iran’s Revolutionary Guard warned Tuesday that “restraint is over,” threatening to disrupt regional oil and gas supplies for years as Israel struck sites in Iran ahead of Trump’s 8 p.m. EDT deadline. The heightened Middle East uncertainty has kept precious metals in a tight range over the past two weeks. Meanwhile, UBS lowered its June-end gold forecast to $5,200 per ounce, noting the current macroeconomic backdrop marks a shift away from the earlier disinflation narrative. In a significant development for physical investors, China’s central bank added to its gold reserves for a 17th consecutive month, bringing holdings to 74.38 million fine troy ounces by end of March—underscoring sustained official-sector demand even at elevated price levels. For physical gold buyers, this continued central bank accumulation signals that institutional demand remains a floor under prices, even during periods of market stress and profit-taking.

 

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