China has not made any gold purchases for the fifth consecutive month, as the surge in gold prices to new record highs has kept the world’s largest investor on the sidelines. Figures released Monday regarding China’s foreign reserves for September showed that gold reserves remained unchanged for the fifth month in a row at 72.8 million troy ounces. However, the value of these gold reserves rose to $191.47 billion from $182.98 billion at the end of August and $176.64 billion at the end of July.
Gold prices have increased by 29% so far this year, with the record surge accelerating since May, which has forced China’s central bank, the People’s Bank of China, to the sidelines. This marks the end of 18 months of purchases, which began at the end of 2022.
The People’s Bank acquired a total of 28.9 tonnes of gold from January to April, bringing its total holdings to 2,264.3 tonnes, or 72.8 million ounces, which it still retains.
Gold bulls may not notice the continued absence of Chinese buying, given the ongoing market activity driven by developments in Israel, Gaza, Iran, and Lebanon, particularly in terms of safe-haven buying and hedge funds capitalizing on the upward trend.
