The People’s Bank of China increased gold reserves by 650,000 ounces in August, the largest addition since 2023, data released by the central bank on Monday showed.
This purchase extended the NBK’s streak of continuous gold acquisitions to 22 consecutive months. The central bank is among the largest official buyers of the precious metal in the world.
The purchase comes as gold prices rose nearly 10% in August after a period of pressure on the metal earlier in the year. The rise in prices coincided with renewed interest in assets that protect against currency depreciation.
The US Treasury Department’s plan to increase government debt purchases has raised concerns about inflation and a possible weaker dollar. These concerns have prompted investors to turn to alternative stores of value, including gold.
Continued accumulation of gold by the People’s Bank of China, as well as purchases by other sovereign investors, are supporting the long-term outlook for the gold market. However, high bond yields continue to pose challenges for the non-interest bearing metal in the short term.
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