China Adds Most Gold Since 2023 Amid Bullion Price Surge

China's central bank, the People's Bank of China (PBOC), has added its most gold to reserves since 2023. In August, the PBOC accelerated its purchases even as bullion prices surged.

The PBOC's holdings rose by 650,000 ounces, extending its buying streak to 22 months, according to data released on Monday. The prolonged accumulation of bullion has reassured some gold bulls about the longer-term outlook, despite elevated bond yields being a headwind for the non-interest-bearing metal in the near term.

The revival of the so-called debasement trade, which was triggered by the US Treasury's plan to ramp up buybacks of government debt, fueled concerns about inflation and dollar weakness. This prompted investors to seek alternative stores of value such as gold.