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China’s Central Bank Extends Gold Buying Spree to 10 Months - BLOOMBERG
(Bloomberg) -- The People’s Bank of China increased its gold holdings in August for a 10th month, in a continued push to diversify its reserves away from US dollars.
Bullion held by the central bank rose by 0.06 million troy ounces to 74.02 million troy ounces last month, according to data released on Sunday. China began this round of gold purchases in November, accumulating a total of 1.22 million troy ounces over the period.
Gold has notched record highs in recent days, breaking a months-long holding pattern, after bets on US rate cuts and the White House’s attacks on the Federal Reserve provided fresh catalysts for its rally. Bullion has climbed more than 30% this year to above $3,500 an ounce, and any damage to the Fed’s independence could push it near $5,000, according to Goldman Sachs Group Inc.
Globally, the accumulation of gold by central banks has slowed as prices have risen, although geopolitical risks should continue to support demand from the official sector, according to the latest report from the producer-funded World Gold Council.
