Gold Prices Fall, But Investor Demand Remains Strong Amid Rising Gold Reserves and Treasury Buybacks

Gold prices continued their downward trend for the third consecutive week, despite a brief rebound to $4,360 per ounce on Friday. However, investor demand remains strong, with gold ETF inflows signaling resilient interest in the precious metal.

The People's Bank of China added 650,000 troy ounces of gold to its reserves in August, marking its largest monthly purchase since late 2023 and the 22nd consecutive month of buying. China's official gold holdings reached 76.73 million troy ounces, with 3.93 million troy ounces added since the current buying streak began in November 2024.

Jeff Currie, former Goldman Sachs commodities chief, sees Treasury buybacks as a long-term bullish signal for gold. He described the policy as 'financial repression' and the 'ultimate buy signal' for gold, arguing that it strengthens the investment case for gold and other hard assets.