China's central bank added to its gold reserves for the 18th consecutive month in April, though the rate of acquisition has slowed due to soaring gold prices. The People’s Bank of China, a major player in the bullion market, purchased 60,000 troy ounces in April, a significant decrease from the 160,000 ounces bought in March and 390,000 in February. This slowdown occurs as gold prices hit record highs, impacting demand even as first-quarter purchases by central banks globally were the strongest on record, driven in part by these institutions, as noted by the World Gold Council and supported by insights from Goldman Sachs on continued potential in emerging markets.

Gold prices are up as mixed economic signals emerged from the U.S., prompting optimism about a potential "soft landing" for the economy amid ongoing Federal Reserve efforts to combat inflation. The metal saw a 1% rise on Monday, recovering after two consecutive weeks of losses—the first since February. This rebound reflects investor reactions to a recent U.S. jobs report, which suggested a slowing economy and alleviated fears of a recession coupled with high inflation. Chicago Fed President Austan Goolsbee indicated that such data trends could support a case for easing monetary policy this year. Despite these challenges, gold has surged approximately 12% this year, bolstered by central bank purchases, demand from Asian markets, and safe-haven buying due to geopolitical tensions.

Gold prices rose on Monday due to a weakening U.S. dollar, following a disappointing U.S. jobs report that raised the possibility of the Federal Reserve cutting interest rates. Spot gold increased by 0.8% to $2,320.33 per ounce, while U.S. gold futures rose by 0.9% to $2,329.10. The underwhelming job growth and slowing wage increases suggest room for potential rate reductions by the Fed in 2024, according to Ricardo Evangelista, a senior analyst at ActivTrades.

U.S. Treasuries are generating substantial income for investors, marking a significant turnaround from nearly two decades of low returns due to zero-rate policies. As benchmark rates climbed from nearly 0% to over 5% within just two years, investors now see a reliable source of income in these government bonds. Last year, investors earned nearly $900 billion from U.S. government debt, a figure that's double the average of the previous decade. Moreover, over 90% of Treasuries now offer coupons of at least 4%, providing a strong buffer against potential rate hikes. This resurgence highlights Treasuries’ renewed role as a dependable economic staple, capable of delivering consistent annual returns.