China’s central bank resumes gold purchases after six-month hiatus in November

CHINA’S central bank resumed buying gold for its reserves in November after a six-month pause, official data by the People’s Bank of China (PBOC) showed on Saturday (Dec 7).

The PBOC was the world’s largest official sector buyer of gold in 2023. Resumption of its purchases may support Chinese investor demand which was muted since the PBOC paused its 18-month buying streak in May.

China’s gold holdings rose to 73 million fine troy ounces at the end of November, up from 72.8 million troy ounces a month earlier.

The value of China’s gold reserves fell to US$193.4 billion at the end of last month from US$199.16 billion at the end of October.

November was gold’s first monthly price drop since June due to a post-US election sell-off driven by Donald Trump’s win.

Spot prices for the precious metal are down 5 per cent since hitting a record high of US$2,790.15 an ounce on Oct 31, but are still up 28 per cent so far this year.

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“The resumption will send a signal that the PBOC has grown accustomed to these record-high price levels and is prepared to build reserves regardless,” said Ole Hansen, head of commodity strategy at Saxo Bank. REUTERS