China's Central Bank Boosts Gold Reserves Amid Platinum Price Decline
The gold market is experiencing some mixed signals. On one hand, China's central bank has been actively buying up gold reserves, adding 650,000 troy ounces in August, its largest monthly purchase since late 2023. This brings their official gold holdings to 76.73 million troy ounces.
On the other hand, platinum prices have fallen by over a third from their January record near $3,000 an ounce, and the World Platinum Investment Council now expects a surplus of 265,000 troy ounces in 2026, reversing its previous forecast for a deficit.
Gold ETF inflows remain resilient, with investors adding gold exposure during periods of price weakness. This is driven by concerns over currency intervention, fiscal sustainability, and the long-term purchasing power of fiat currencies.
Jeff Currie, former Goldman Sachs commodities chief, sees Treasury buybacks as a bullish signal for gold. He describes it as 'financial repression' and the 'ultimate buy signal' for gold and other hard assets.