China Adds Record Amount of Gold to Reserves Amid Global Economic Uncertainty

Central banks have been buying gold in large quantities, and China is no exception. According to data released by the People's Bank of China (PBOC), the country added 650,000 ounces of gold to its reserves in August, making it the largest monthly increase since 2023.

This marks the 22nd consecutive month that China has been adding bullion to its reserves. Gold prices had experienced pressure earlier this year but staged a strong recovery in August, gaining almost 10% as investors sought alternative stores of value due to concerns over inflation and a weaker dollar.

The PBOC's continued accumulation of gold, along with purchases by other sovereign investors, has provided reassurance to bullish investors about the metal's longer-term prospects. However, elevated bond yields continue to pose a challenge for gold in the near term, as it does not generate interest.