Gold soars, but China buys 650,000 ounces; adds most precious metal since 2023
China has significantly increased its gold reserves, purchasing 650,000 ounces in August as part of a 22-month buying streak. This trend, alongside other central bank activity, has helped gold prices recover despite challenges from high bond yields.
Why it matters
Central bank gold accumulation is a key indicator of global economic sentiment and efforts to diversify reserves away from the US dollar.
Gold prices are driven not just by the gold individuals buy or sell. In fact, one of the biggest factors that drives gold prices is the trendline of central banks buying or selling gold.And large economies like India and China have been buying gold for the last few years. While India’s purchases have somewhat reduced, China has increased its gold reserves by the largest amount since 2023 in August, stepping up purchases even as bullion prices climbed sharply during the month.China’s record gold buying spreeData released by the People's Bank of China on Monday showed that its gold holdings increased by 650,000 ounces.
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