The People’s Bank of China increased its gold reserves by 650,000 ounces in August, marking the largest monthly addition since October 2023. This purchase extends the central bank's continuous buying streak to 22 consecutive months. The volume of gold acquired in August is equivalent to approximately 20.2 metric tons.
Data from the State Administration of Foreign Exchange shows that total gold reserves reached 76.73 million fine troy ounces by the end of August. The reported value of these holdings rose to $350.08 billion, up from $306.35 billion in the previous month. This increase of $43.7 billion is primarily attributed to the appreciation of gold prices.
Gold prices experienced a notable rise of approximately 10% in August, representing the best monthly performance since January. Market activity was influenced by the US Treasury's debt buyback plans, which raised concerns regarding inflation and dollar stability. Investors turned to gold and Bitcoin as stores of value during this period.
The momentum shifted toward the end of the month following comments from Federal Reserve official Kevin Warsh, who signaled potential interest rate increases. Following the release of US jobs data, spot gold prices declined by 1.75%. As of early September, the price of the metal has recorded a further decrease of 0.27%.
