The developments come as the People’s Bank of China’s fresh data revealed on Monday that Beijing has expanded its gold reserves for the fourth straight month.
A weak US dollar prompted gold prices to climb to a more-than-one-week peak in global markets on Monday.
Spot gold increased by 0.4 per cent to $1,296.87 per ounce after touching its highest since March 29 at $1,297.86 during the session earlier in the day, Reuters reports.
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The dollar plummeted as bond yields expanded their decline after a US jobs report showed wage growth losing momentum even as employment increased.
The dollar’s weakness is considered good for gold because the commodity becomes cheaper in other currencies, giving rise to its demand.
“The dollar index is pulling back from multi-week highs and gold prices are riding this tailwind of softer dollar. Though the non-farm payrolls data was better than expected, the manufacturing jobs fell which is a bad signal for the sector and doesn’t show a very bright picture of the economic outlook”, Margaret Yang, a market analyst with CMC Markets, Singapore, pointed out.
The developments come amid reports that China continues its bullion-buying spree as part of a strategy to shift away from the US dollar.
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According to fresh figures released by the People’s Bank of China (PBoC), Beijing increased its gold reserves for the fourth straight month in March to a total of 1,894 tonnes, or 60.62 million ounces.
The push comes amid similar efforts by other countries, including Russia and Japan, to sell US dollar reserves and treasuries amid their perceived weakness as an investment. Slowing global economic growth and uncertainties over the ongoing trade war between China and the US are also playing a role, according to stock market analysts.
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In a separate development earlier this month, a report by independent London-based precious metals consultancy Metals Focus suggested that higher than expected gold consumption by jewellers is expected to drive gold prices up to their highest levels since 2013.
According to the survey, prices should average $1,310 per ounce in 2019, up from $1,300 per ounce at present, and up from the $1,268 per ounce average seen in 2018.