(July 7): China’s central bank bought more gold in June, extending the longest buying streak since at least 2015 and underscoring a commitment to diversifying its reserve despite volatility in bullion prices.
Bullion held by the People’s Bank of China rose by 480,000 troy ounces to 75.44 million ounces last month, according to data released on Tuesday. The purchase is the biggest since October 2023, and brings the buying streak to 20 months.
Gold fell 12% in June, breaking below $4,000 an ounce and capping its biggest monthly loss since 2008. Rising inflationary risks as a result of the Iran war, and a hawkish tone from the Federal Reserve, raised expectations for rate hikes, which are negative for the non-yielding metal. Major banks, including Goldman Sachs Group Inc and Deutsche Bank AG, have lowered their year-end forecasts for the metal.
Still, the outlook remains supported by purchases from the official sector. The latest survey from the World Gold Council in June shows that more central banks than ever expect to increase their reserves in the coming year.
Uploaded by Magessan Varatharaja
