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China raises gold reserves for 10th straight month

China raises gold reserves for 10th straight month

Mubasher: China added to its gold holdings for the tenth month running in September, sending total yellow bullion reserves to 100 tonnes since resuming its purchases last December, Bloomberg reported.

The People’s Bank of China (PBoC) raised gold’s reserves to 62.64 million ounces last September, up from 62.45 million ounces in August, putting the country’s holdings of the precious metal at nearly $93 billion.

In tonnage terms, the PBoC’s latest addition came in at 5.9 tonnes, which follows around 99.8 tonnes over the preceding nine months.

Gold hit its highest level since more than six years ago last month, as growth slowdown fears, flaring trade conflict and monetary easing have boosted safe-haven demand among investors.

Central banks have been also major buyers of the bullion, most specifically in emerging market economies.

“Given strained relations with the US, China needs a hedge against its large holdings of the dollar, and gold serves that function,” OCBC Bank economist Howie Lee was quoted by Bloomberg.

China’s accumulation of gold came amid a global spree of gold purchases. In the six months to June, central banks worldwide bought 374.1 tonnes, the World Gold Council (WGC) said.

Gold prices declined on Monday as the US dollar firmed against rivals after a report saying that China was reluctant to agree to a broad deal with the US.

By 11:39 am GMT, spot gold fell by 0.40% to $1,498.63 per ounce, while US gold futures dropped by 0.58% to $1,504.20 per ounce.