(Bloomberg) -- China’s central bank topped up its gold reserves for an 18th straight month in April, although the pace of buying slowed in the face of record prices.

The People’s Bank of China has long been one of the market’s largest buyers, steadily growing its bullion holdings since 2022. However, the precious metal’s record-breaking rally since mid-February — with successive all-time-highs reached last month — seems to have dented demand.

In April, the PBOC bought 60,000 troy ounces, according to official data released Tuesday. That’s down from 160,000 ounces in March, and 390,000 ounces in February.

First-quarter purchases by the world’s central banks, led by China, were the strongest on record, according to the World Gold Council. Some market watchers have suggested that gold’s 12% rally this year has been partly driven by mystery buyers among those institutions.

Central banks tend to be longer-term strategic buyers, and bullion-buying by institutions in emerging markets has much further to run, according to Goldman Sachs Group Inc.

“Emerging market central banks drive the gold rush,” Goldman researchers wrote in a note. Bullion holdings are still only 6% of reserves at emerging central banks, half the levels in developed markets.

Gold has also been supported by increased demand from Asian investors, especially in China, where appetite has been sharpened by an underperforming economy and lackluster markets. Heightened geopolitical risk amid conflicts in Ukraine and the Middle East has also bolstered haven buying. 

Spot gold fell 0.2% to $2,319.79 an ounce at 10:41 a.m. in New York. The Bloomberg Dollar Spot Index was up slightly. Silver and palladium were little changed, while platinum rose.

--With assistance from Yvonne Yue Li.

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