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.
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 72.96 million fine troy ounces at the end of November, up from 72.80 million troy ounces a month earlier.
The value of China’s gold reserves fell to $193.43 billion at the end of last month from $199.06 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% since hitting a record high of $2,790.15 an ounce on Oct. 31, but are still up 28% so far this year.
“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.
(By Polina Devitt, Qiaoyi Li, Ryan Woo and Winni Zhou; Editing by William Mallard and Michael Perry)
