China’s gold reserves were unchanged for a fifth straight month in September By Reuters

SHANGHAI (Reuters) – China’s central bank stopped buying gold for its reserves for a fifth straight month in September, official data showed on Monday, mainly due to a rise in prices for the yellow metal.

China’s gold holdings were 72.8 million troy ounces at the end of last month. However, the value of gold reserves rose to $191.47 billion from $182.98 billion at the end of August.

Gold prices have risen about 28% so far this year – heading for their biggest annual gain in 14 years – supported by the start of interest rate cuts at the US Federal Reserve, geopolitical tensions and robust demand from central banks.

Global central banks, which have been actively buying gold in 2022-2023, are on track to slow purchases in 2024 from 2023, according to the World Gold Council, but maintain them above pre-2022 levels.

This is partly due to the pause in purchases by the People’s Bank of China (PBOC), which until May had bought gold for 18 consecutive months.

The central bank was the world’s biggest official buyer of gold in 2023, and its decision to suspend its purchase has dampened demand from Chinese investors in recent months. “With higher gold prices, the PBOC continues to hold back on new purchases. We think the central bank would like more gold but is waiting for a more attractive entry point,” said WisdomTree commodities strategist Nitesh Shah.

“However, with global interest rates falling and geopolitical tensions on the rise, it looks like it will have to wait a while for prices to drop. Given our forecast for prices to rise above $3,000/oz next year, the central bank may want to consider building positions earlier.”