China’s April net gold imports via Hong Kong rose to the highest in two months, Hong Kong Census and Statistics Department data showed on Monday.

Net imports into the world’s top gold consumer rose to 49.906 tonnes in April, the highest since February and compares with 47.527 tonnes in March, the data showed.

Total gold imports via Hong Kong were up 4.4% at 53.581 tonnes, after declining in March.

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“The central bank most likely continued to diversify its forex reserves into gold,” said UBS analyst Giovanni Staunovo.

The People’s Bank of China controls the amount of gold entering the country via quotas to commercial banks.

The Hong Kong data, however, may not give a full picture of Chinese purchases because gold is also imported through Shanghai and Beijing.

Physical demand in the region, however, remained subdued last month as elevated prices kept retail buyers away, with some dealers charging premiums as low as $1 an ounce over benchmark prices and some even offering discounts, versus the $26-$40 premiums quoted in March.

Gold prices have now come off their recent near-record highs and some analysts believe this could spur jewellery demand in key Asian markets.