Official data issued by the People’s Bank of China on Saturday showed that the Chinese central bank resumed purchasing gold for its reserves in November after a six-month hiatus.
The People’s Bank of China was the world’s largest official buyer of gold in 2023. The resumption of purchases may support demand from Chinese investors, which has been weak since the People’s Bank of China halted an 18-month series of purchases in May.
China’s gold holdings rose to 72.96 million Trojan ounces at the end of November, compared to 72.80 million Trojan ounces in the previous month.
The value of China’s gold reserves fell to $193.43 billion at the end of last month, compared to $199.06 billion at the end of October.
November saw the first monthly decline in gold prices since June due to the post-US election sell-off that was driven by Donald Trump’s victory.
Spot prices for the precious metal have fallen by 5% since hitting an all-time high of $2,790.15 an ounce on October 31, but are still up 28% so far this year.
“The resumption will send a signal that the People’s Bank of China is used to these record high price levels and is ready to build reserves regardless,” said Ole Hansen, head of commodity strategy at Saxo Bank.
