China's Central Bank Boosts Gold Reserves with Largest Monthly Purchase Since 2023
Gold prices have been experiencing a strong surge this week, surpassing $4,300 per ounce after gaining approximately 7% in value.
The metal's strength is attributed to various factors, including a weaker US dollar, falling Treasury yields, and geopolitical uncertainty surrounding Iran and the Strait of Hormuz.
China's Central Bank has further fueled the gold market by making its largest monthly purchase since October 2023. In July, the institution acquired 20 tonnes of gold, marking the 21st consecutive month of increased reserves. This brings China's total holdings to a record 2,366 tonnes.
The country's central bank is not only accumulating physical gold but also relocating its reserves from London to Hong Kong as part of an effort to support the city's ambition to become a major global gold-trading hub.