Chinese central bank resumes gold purchases after six-month break
File photo shows the headquarters of the People's Bank of China in Beijing, China. (AFP Photo)
The People’s Bank of China (PBOC) resumed adding to its gold reserves in November, ending a six-month hiatus, according to official data released on Saturday.
By the end of November, the central bank’s gold holdings reached 72.96 million fine troy ounces, a modest increase from 72.80 million ounces recorded the previous month.
However, the overall value of these reserves decreased to $193.43 billion, down from $199.06 billion at the end of October.
November also saw the first decline in gold prices since June, following a sell-off linked to Donald Trump’s election victory. While gold prices fell by 5% after peaking at $2,790.15 per ounce on Oct. 31, the precious metal has still gained 28% over the year.
Ole Hansen, head of commodity strategy at Saxo Bank, evaluated the Chinese central bank’s move to Reuters, remarking the resumption of gold purchases by the PBOC indicates its acceptance of the current record-high price levels and its readiness to continue building reserves despite these elevated prices.
In 2023, the PBOC emerged as the largest official buyer of gold worldwide.
The return to purchasing may also encourage Chinese investors to re-engage with gold, a market that has slowed since the bank paused its acquisitions in May following an 18-month buying spree.
