PBOC Boosts Gold Reserves by Largest Amount Since 2023
The People's Bank of China (PBOC) added 650,000 ounces to its gold reserves in August, marking the largest increase since 2023. This purchase extends the PBOC's buying streak to 22 consecutive months, solidifying its position among the world's largest official-sector buyers of gold.
The price of gold rose nearly 10% in August following a period of pressure earlier in the year. The surge coincided with renewed interest in the debasement trade, sparked by concerns about inflation and potential dollar weakness after the US Treasury announced plans to increase buybacks of government debt.
Investors turned to alternative stores of value, including gold, as a result of these concerns. The PBOC's continued accumulation of gold, along with purchases by other sovereign investors, has provided support for the longer-term outlook among gold market participants.