Economists at Commerzbank expect the Gold price to remain supported as the PBoC is set to continue buying Gold.

Chinese central bank continues to buy Gold

The Chinese central bank (PBoC) continued to increase its Gold reserves in February for the 16th consecutive month. According to the PBoC, Gold reserves increased by around 390 thousand ounces month-on-month, which corresponds to purchases of 12 tons. 

In addition, the ongoing debate about the possible use of frozen Russian assets for the reconstruction of Ukraine is likely to have significantly increased the sanctions risk of investments in US Dollars or Euros from the PBoC's perspective. This suggests that the PBoC will continue to buy Gold in the coming months, which should therefore remain a support for the Gold price.