China Loads Up on Gold with Record Monthly Purchase

China's central bank has made its largest monthly gold purchase since 2023, adding 650,000 troy ounces to its reserves in August. This brings the total holdings to 76.73 million troy ounces, valued at $350.08 billion.

The People's Bank of China has been buying gold for 22 consecutive months, with a reported value increase of $43.73 billion from July to August. The metal still can't hold above $4,400 an ounce, despite the central bank's accumulation being described as 'a highly strategic and forward-looking deployment' by Gu Fengda, chief analyst at Guoxin Futures.

The World Gold Council reported a record 288.9 tonnes of gold added to central banks in the second quarter, with Poland leading the way with 51 tonnes. However, gold itself has had a rougher few weeks, pressured by stronger-than-expected U.S. jobs data that pushed the odds of a Federal Reserve rate hike at the next meeting.