The People’s Bank of China (PBOC) was the world’s largest official sector gold buyer in 2023. A resumption of its purchases could support demand from Chinese investors.
China’s central bank resumed buying gold for its reserves in November after a six-month pauseofficial data showed on Saturday.
The People’s Bank of China (PBOC) was the largest official gold buyer in the world in 2023. The resumption of its purchases could support demand from Chinese investors, which has been muted since the entity interrupted its streak of purchases in May. 18 months of purchases.
China’s gold holdings amounted to 72.96 million fine troy ounces at the end of November, up from 72.80 million troy ounces the previous month.
The value of China’s gold reserves fell to $193.43 billion at the end of last month, compared to 199,060 million at the end of October.
The price of gold recorded its first monthly decline since June in November, due to post-US election selling driven by Donald Trump’s victory.
Spot prices of the precious metal are down 5% since hitting an all-time high of $2,790.15 an ounce on Oct. 31, but they continue to rise 28% so far this year.
“The resumption will send a signal that the PBOC has become accustomed to these record price levels and is willing to build reserves regardless,” said Ole Hansen, head of commodities strategy at Saxo Bank.
Source: Ambito
