People's Bank of China (PBC) buys gold for 22 consecutive months... 18.4 tons in August alone

[Financial News] China accelerated its gold stockpiling in August, continuing its record of 22 consecutive months of purchases despite rising gold prices.
According to data released by the People's Bank of China (PBC), China's central bank, on the 7th (local time), China's gold reserves increased by 650,000 ounces (18.4 tons) in August compared to the previous month. This is the largest monthly purchase volume since 2023.
International gold prices surged by about 10% during the month of August as hedging transactions revived in response to the decline in the value of the dollar.
This is because concerns about inflation and a weak dollar intensified after the U.S. Department of the Treasury (Treasury Department) announced it would expand its government bond buyback program, causing investors to flock to gold, an alternative asset.
Bloomberg predicted that while the recent rise in government bond yields is acting as a negative factor for non-interest-bearing gold, the People's Bank of China (PBC)'s expanded gold purchases, along with those of central banks around the world, will support a rise in gold prices in the long term.


[email protected] Lee Seok-woo, International Specialist Reporter