The People's Bank of China continued its 17-month buying of gold in March, despite the worst month for gold since 2008. This move comes as the Iran war escalated, reviving inflationary pressures and raising growth fears, leading to investors to rethink interest rate cuts. This combination hit gold hard, reducing its value of Beijing's reserves. Despite these pressures, gold has bounced back into the high-$4,700s. The People’s Bank of Chinese increased its gold holdings to 74.38 million fine troy ounces at the end of March, up from 74.22 million in February. The value of these holdings effectively dropped to $342.76 billion from $387.59 billion, the first monthly drop in reserve value since May 2025. Gold is seen as a valuable asset during times of turmoil, particularly when it is highly sensitive to the uncertainty surrounding the global dollar.