GOLD NEWS

China holds off on gold purchases for 5th straight month

Mon Oct 07 2024

The People’s Bank of China (PBC) maintained its gold holdings at 72.8 million troy ounces at the end of September. However, the value of these reserves increased to $191.47 billion from $182.98 billion in August, reflecting the rise in gold prices.

Gold prices surged around 28 per cent this year, heading towards the largest annual gain in 14 years. The increase is driven by factors such as the start of US Fed interest rate cuts, geopolitical tensions, and robust demand from central banks worldwide.

Global central banks, which actively purchased gold in 2022 and 2023, are expected to slow their purchases in 2024 compared to the previous year. However, they are still projected to maintain gold purchases above pre-2022 levels.

The pause in gold purchases by the PBC, which had previously bought gold for 18 consecutive months until May, has contributed to a slowdown in Chinese investor demand for gold in recent months.

Source: https://en.amwalalghad.com