Gold mine File photo: VCG

China's central bank increased its gold reserves for the 17th consecutive month in March. Analysts noted that this steady and sustained buying is intended to optimize the structure of reserves and hedge sovereign risks, especially amid a complex international environment.

According to official data released on Tuesday, China's gold reserves stood at 74.38 million ounces at the end of March, up from 74.22 million ounces at the end of February.

"As a non-sovereign credit asset, gold cannot be frozen and operates independently of any monetary system, making it a strategic 'anchor' against geopolitical and financial uncertainties," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Tuesday.

In addition, escalating tensions in the Middle East and recurring global trade frictions have further strengthened gold's safe-haven appeal, Yang said.

As of the end of March, China's foreign exchange reserves stood at $3.3421 trillion, down $85.7 billion from the end of February, a decline of 2.5 percent month-on-month, according to data released by the State Administration of Foreign Exchange (SAFE) on Tuesday.

The SAFE said that in March, the US Dollar Index rose amid changes in the global macroeconomic environment, monetary policies of major economies, and shifting expectations. Global financial asset prices generally fell. Affected by exchange rate translation effects and changes in asset prices, China's foreign exchange reserves declined during the month.

The administration also stressed that China's economy continued to operate steadily with steady progress, achieving new results in high-quality development, which provided strong support for maintaining the basic stability of foreign exchange reserves.

Global Times