7.8 C
London
Thursday, December 12, 2024
HomeNewsChina's central bank skips gold buying for second straight month: Ending 18-month...

China’s central bank skips gold buying for second straight month: Ending 18-month streak

Date:

Related stories

Gazprom Maintains Stable Gas Deliveries to Europe, Sending 42.3 Million m³ on Monday

Brussels, October 14 (FinanceFlashNews.com) – Gazprom, Russia’s gas producer,...

Markets Anticipate Faster ECB Rate Cuts as Eurozone Inflation Falls

Frankfurt, October 14 (FinanceFlashNews.com) – Financial markets are predicting...

Tax Hike in France Will Hurt Investments, Warns Stellantis CEO

Paris, October 14 (FinanceFlashNews.com) – The French government's plan...

Finland’s Inflation Drops to Lowest Level in Nearly Four Years

Helsinki, October 14 (FinanceFlashNews.com) – Year-on-year inflation in Finland...

Moody’s Downgrades Belgium’s Credit Outlook to Negative

Brussels, October 13 (FinanceFlashNews.com) – Moody's Ratings downgraded Belgium’s...

China’s central bank (PBOC) has once again refrained from increasing its gold reserves in June, ending an 18-month buying spree that had pushed gold prices to record highs. According to data released on July 7, 2024, PBOC’s gold holdings remained unchanged at 72.8 million troy ounces at the end of June, the same level as at the end of May.

The move surprised some analysts who had expected China, the world’s second-largest economy, to continue diversifying its reserves and protecting itself from inflation by buying gold. The rise in geopolitical tensions and uncertainty in financial markets in recent months has led to around 20 central banks planning to increase their gold reserves in 2024.

Gold prices reached a record high of over $2,400 per ounce in May, but have eased slightly in recent weeks after expectations for US monetary easing have diminished. Despite this pullback, gold prices remain significantly higher compared to 2023.

Some analysts believe that high gold prices may have deterred PBOC from further purchases. Others point to the slowdown in the Chinese economy as a possible factor. Regardless of the reasons, it is clear that PBOC has taken a cautious approach to gold buying in this critical period for the global economy.

It is important to note that even though PBOC did not buy any gold in June, it is still one of the largest holders of gold in the world. Its gold reserves represent around 2% of its total foreign exchange reserves.

It remains to be seen how PBOC will approach gold buying in the future. The trajectory of the global economy, gold prices, and US monetary policy will likely play a key role in the bank’s decision-making.

Financeflashnewshttps://financeflashnews.com
This article was written by the editorial team of Financeflashnews. We strive to provide you with accurate and up-to-date information from the world of finance and investment. If you find any errors in the article, please let us know at corrections@financeflashnews.com. Your feedback is valuable to us and will help us improve the quality of our content.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories