China's Gold Buying Streak Continues with Largest Increment Since October
China's gold buying streak has continued into August, with its central bank purchasing 650,000 ounces of gold in the month, marking the largest increment since October 2023. This brings China's official gold holdings to 76.73 million ounces at the end of the month, up from 76.08 million oz at the end of July.
The increase in gold reserves is seen as a long-term strategy by experts to enhance financial security and support the renminbi's internationalization. Gold prices surged 9.7 percent in August, with London spot gold briefly approaching $4,700 per ounce.
According to Wang Qing, chief macroeconomic analyst at Orient Golden Credit Rating International, China's accelerated gold buying in August may have reflected growing concerns over US fiscal risks and the dollar's credibility.