According to official data released on Saturday, the central bank of China held off on purchasing gold for its reserves for the fourth consecutive month in August. At the end of last month, China held 72.8 million fine troy ounces of gold.
The gold reserves, on the other hand, increased to $182.98 billion from $176.64 billion at the end of July. This year, gold prices have been rising as a result of bets that the United States will soon cut interest rates and safe-haven demand brought on by geopolitical and economic uncertainty, with central banks buying a lot of gold.
This year, gold prices have increased by 21%, but they are still just slightly below the record high of $2,531.60 set in August. 20. The People’s Bank of China (PBOC) had bought gold for 18 months in a row before it stopped buying it. In 2023, the central bank was the single largest buyer of gold in the world.
In recent months, the central bank’s decision to stop buying gold has stifled demand from Chinese investors. According to Julius Baer analyst Carsten Menke, the PBOC is likely to resume purchases at some point despite high prices due to political rather than economic reasons, such as its desire to be less dependent on the US dollar as a reserve asset.
