Beijing Boosts Gold Holdings Amid Price Surge

China's central bank added 650,000 ounces of gold to its reserves in August, marking the largest monthly addition since October 2023. This brings Beijing's buying streak to 22 consecutive months, with purchases accelerating as gold prices rose.

The People's Bank of China (PBOC) acquired a significant amount of gold in August, adding more than 21 times the 30,000 ounces it bought in February. The increase in reserves extends Beijing's accumulation pace, with reserves now totaling 76.73 million fine troy ounces.

Gold prices surged 10% in August, its best monthly performance since January, driven by a revival of the 'debasement trade.' This trend saw investors flocking to safe-haven assets like gold and Bitcoin (BTC) amid concerns over inflation and a weaker dollar. However, momentum faded at the end of the month as Federal Reserve Chair Kevin Warsh hinted at further US rate increases.