China held 72.80 million troy ounces of gold on the finish of June, unchanged from the top of Could, the info confirmed. The worth of China’s gold reserves fell to $169.70 billion from $170.96 billion.
“It seems that gold costs stay a little bit too excessive and the PBOC is ready for an additional pullback earlier than resuming its gold buying program,” mentioned Nitesh Shah, a commodity strategist at WisdomTree.
Demand for gold from central banks has been elevated previously two years as a number of nations diversify their international foreign money reserves. The PBOC was the biggest official sector purchaser of gold in 2023, with its largest additions since no less than 1977.
“Our fashions point out that we might get a 7% pullback in gold costs this quarter, organising an ideal alternative for the PBOC to amass extra gold,” Shah mentioned. “However it should be fast because the metallic is more likely to rally to all-time highs as soon as once more shortly after.”
(By Polina Devitt and Liangping Gao; Modifying by William Mallard)