China’s central bank resumed buying gold for its reserves in November after a six-month pause, official data showed on Saturday.
The People’s Bank of China (Pboc) was the world’s largest official sector gold buyer in 2023.The resumption of its purchases could support demand from Chinese investorswhich was cushioned since the entity interrupted its 18-month purchasing streak in May.
China’s gold holdings reached 72.96 million fine troy ounces at the end of Novembercompared to 72.80 million troy ounces the previous month.
The value of China’s gold reserves fell to US$193.43 billion at the end of last month, compared to US$199.06 billion at the end of October.
The price of gold recorded its first monthly drop since June in Novemberdue to sales after US elections boosted by Donald Trump’s victory.
Spot prices of the precious metal XAU= are down 5% since hitting an all-time high of US$2,790.15 an ounce on October 31but they are still up 28% so far this year.
“The resumption will send a signal that the PBOC has become accustomed to these record price levels and is willing to build reserves regardless,” said Ole Hansen, head of commodities strategy at Saxo Bank.
