(Kitco News) – China’s central bank refrained from adding to their gold reserves for the third consecutive month in July, according to official data released on Wednesday.
“The People's Bank of China has reported no change to its #gold reserves for the third consecutive month,” wrote Krishan Gopaul, Senior Analyst, EMEA, at the World Gold Council. “Its gold holdings remain at 2,264 tonnes, and still account for around 5% of total reserves.”
While China's gold holdings were unchanged from the end of May and June, the value of the country’s gold reserves rose to $176.64 billion at the end of July from US$169.7 billion at the end of June as the price of gold continued to appreciate.
"It is not surprising that the central bank has paused purchases,” Metals Daily CEO Ross Norman told Reuters. “It gives us a clear indication about their mentality to prices, which is that it is way ahead of itself.”
Norman said the central bank is unlikely to resume purchases if gold prices remain at their current elevated levels.
The People's Bank of China (PBOC) broke its 18-month streak of net gold purchases in May, sending shockwaves through the gold market and causing a sharp selloff when traders realized that one of the yellow metal’s steadiest supports was now on hold.
“What it says to me is they're not just going to keep paying up forever and ever,” Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, told Kitco News at the time. “They've got a limit of how much they're willing to pay, and we've probably gotten to it.”
“Does it mean they're done, or did they have to take a break for any number of reasons? And if so, for how long? That's a big unknown,” he added.
Spot gold prices have gained about 16% in 2024 and hit a new all-time high of $2,483.60 on July 17.
