China's central bank stepped up its gold purchases for a sixth straight month in August, adding the most bullion to its reserves since October 2023 and extending its buying streak to a 22nd consecutive month, official data showed on Monday.
The People's Bank of China's gold holdings rose to 76.73 million fine troy ounces at the end of August from 76.08 million ounces a month earlier.
The 650,000-ounce addition, equivalent to about 20.2 metric tons, was slightly larger than the 640,000 ounces added in July and the biggest monthly increase since October 2023, when holdings rose by 740,000 ounces.
The pace of purchases has been increasing since March, when the central bank added 160,000 ounces. It added 480,000 ounces in June.
China has continued to accumulate gold even as bullion prices have risen sharply this year.
The value of China's gold reserves jumped to US$350.08 billion (HK$2.73 trillion) at the end of August from US$306.35 billion a month earlier, the data showed, reflecting both fresh purchases and a sharp rise in gold prices.
Gold gained 9.7 percent in August, its strongest monthly advance since January, supported by a weaker dollar, lower Treasury yields and safe-haven demand.
Prices came under pressure toward the end of the month after Federal Reserve Chair Kevin Warsh struck a hawkish tone, reviving expectations for further US interest-rate increases.
Spot gold was down around 0.4 percent on Monday after stronger-than-expected US jobs data boosted rate-hike expectations.
Reuters
