Make Kitco Your Homepage

PBOC Adds Another 10.3 Tonnes To Gold Holdings

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) - The binge in central-bank gold buying continued when the People’s Bank of China announced at the start of the week that it added another 10.3 tonnes of the precious metal to its holdings, analysts said.

Commerzbank pointed out that the Chinese central bank has now added to its gold reserves every month since December.

“During this period, it has bought a good 85 tonnes of gold in total,” Commerzbank said. “One reason is likely to be the trade dispute with the U.S., which has prompted China to reduce its dollar holdings and U.S. Treasuries of late.”

Fifteen percent of the world’s gold demand last year came from came from central banks, which collectively bought 651.5 tonnes, according to World Gold Council data. These were the most central-bank purchases in roughly half a century. Then in the first quarter of this year, global official gold purchase totaled 145.5 tonnes, a 68% increase compared to the same period in 2018.

“2019 so far has been a strong year for central-bank gold buying with a number of macroeconomic headwinds driving the need to diversify away from the USD [U.S. dollar],” said analysts with BMO Capital Markets.

This comes after news last week that Poland has become the top holder of gold in central Europe by more than doubling its holdings, BMO added.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.