China's central bank halts gold purchases amid record prices
(MENAFN) In August, China’s central bank refrained from adding Gold to its reserves for the fourth consecutive month, maintaining the total amount at 72.8 million ounces. This figure remained unchanged from the previous month, according to official data released on Monday. The People’s Bank of China had previously been increasing its gold reserves consistently for 18 months, a strategy that contributed to the support of gold prices during that period.
The decision to pause gold purchases coincides with a time when gold prices have reached record highs. The central bank’s previous accumulation of gold helped to bolster and sustain the strength of gold prices in the global market. The halt in purchases might reflect a strategic shift or a response to current market conditions, which have seen significant fluctuations in gold values.
Prior to this pause, China's sustained gold-buying activity had been a significant factor in the metal’s price stability and growth. The central bank’s shift away from active gold accumulation could signal a recalibration of its reserve management strategy or an adjustment to its investment approach in light of recent market trends.
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