Central banks across the world continued to buy gold in the first quarter, adding 228.4 tons to global reserves, up 176% YoY, data from the World Gold Council (WGC) showed on Friday. The momentum from central banks showed that in the wake of escalating fears of the U.S. default stemming from inability to raise its national debt ceiling, global investors are further losing trust in holding U.S. dollar assets, leading to a sell-off of these assets and a rush to purchase gold.

China added to its gold reserves for a sixth straight month, extending a flurry of purchases as central banks around the world expand their holdings of bullion amid escalating geopolitical and economic risks.

China raised its gold holdings by about 8.09 tons in April, according to data from China’s State Administration of Foreign Exchange on Sunday. Total stockpiles now sit at about 2,076 tons, after the nation increased reserves by about 120 tons in the five months through March.

China's gold reserves grew 260,000 ounces MoM, data from the People's Bank of China showed on Sunday, with 4.12 million ounces of gold being purchased since November 2022.