Gold Surges on PBOC Buying Streak and US Jobs Shock
The precious metal gold has seen its price surge to its strongest level in two months due to two powerful forces at play. The People's Bank of China (PBOC) continues its unbroken streak of buying gold, adding 0.32 million ounces in May and bringing total reserves to 74.96 million ounces.
This marks the 19th consecutive month of accumulation by the PBOC, with industry estimates suggesting the run may stretch to 21 months. The central bank's strategy is to diversify reserve assets and shore up confidence in the yuan.
Meanwhile, a single disappointing US jobs report has forced a rapid reassessment of the Federal Reserve's tightening path, further boosting gold prices. Despite rising expectations for rate hikes, gold has climbed anyway due to structural demand from Asia.