PBOC Gold Buys Continue for Record 21 Months Amid Global Volatility
China's central bank, the People's Bank of China (PBOC), has continued its gold-buying streak for the 21st consecutive month. According to official data released on August 7, the country's gold reserves rose to 76.08 million ounces by the end of July, up from 75.44 million ounces at the end of June.
The PBOC added 640,000 ounces of gold last month, marking a significant increase in its bullion holdings. This comes as central banks worldwide have shown renewed interest in increasing their gold holdings, which is seen as one of the key factors behind the recent gold price rally.
Ray Jia, head of research for Asia-Pacific excluding India at the World Gold Council, noted that 'hedging against geopolitical risks and pursuing reserve diversification remain the main objectives of gold purchases' for central banks. He added that while some central banks may adjust their pace of gold purchases based on prices in the short term, price factors are not among their primary considerations.
Meanwhile, China's foreign exchange reserves stood at $3.4188 trillion at the end of July, up by $2.5 billion or 0.07 percent from the end of June. The increase came as the US dollar index declined in July, while prices of major global financial assets showed mixed performance.