At the end of last month, China’s gold was 72.8 million fine troy ounces. However, gold reserves increased to $182.98 billion compared to $176.64 billion at the end of July.
Gold prices have been rising this year on strong buying by central banks, amid claims that a US rate cut is imminent and safe-haven demand driven by geopolitical and economic uncertainty.
Gold prices have rallied 21% so far this year and are falling just short of a record high of $2,531.60 on August 20.
Before the pause in its purchases, the People’s Bank of China (PBOC) had bought gold for 18 consecutive months.
The central bank was the world’s biggest single buyer of gold in 2023, and the decision to hold back its purchases has helped calm demand from Chinese investors in recent months.
The PBOC is expected to resume buying at some point despite higher prices due to political, rather than economic, incentives, such as a desire to be less dependent on the US dollar as a reserve asset, said Julius Baer analyst Carsten Menke.
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