China’s Central Bank Adds Gold in September as Bullion Weakens Jessica Zhou China added more gold to reserves last month, pushing a buying streak close to the two-year mark as prices weaken toward $4,000 an ounce. Holdings of bullion at the People’s Bank of China expanded by 740,000 ounces in September, marking the 23rd month of accumulation, according to data on Wednesday. The central bank — among the biggest gold buyers in the world — has stepped up purchases in recent months after prices fell.
Gold shed more than 6% in September, as soaring energy prices driven by the conflict in the Middle East fanned inflation, prompting the Federal Reserve to raise rates. Despite that shift, some of the world’s biggest money managers have signaled they are still betting that long-term drivers of the precious metal will endure, having rebuilt holdings since prices approached $4,000. Rising government debt levels strengthen the case for central banks to increase gold holdings, Joachim Nagel, president of Germany’s Bundesbank, said earlier this week.
In a survey of 74 central banks published by the World Gold Council in June, 45% said they planned to buy in the coming year, the biggest-ever share since the survey began in 2018. Just one said it aimed to cut.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing