China's Central Bank Breaks 3-Year Record in Gold Purchases

The People's Bank of China increased its gold reserves by 480,000 ounces last month, raising its total stock to 75.44 million ounces. This purchase marks the largest monthly acquisition since October 2023, extending the bank's uninterrupted gold buying streak to 20 months. The move is seen as part of China's strategy to diversify its foreign exchange reserves and hedge against geopolitical uncertainties. Despite the recent rise in gold prices, the central bank's continued purchases are noteworthy. Analysts indicate that this buying spree provides significant demand-side support to the global gold market. China's trend of increasing gold reserves may prompt other central banks to take similar actions. This is not investment advice.