Some analysts still believe that purchases will resume as the world’s second-biggest economy seeks to diversify its reserves and guard against currency depreciation. About 20 central banks still expect to raise their gold holdings in the coming year, spurred by heightened geopolitical and financial risks, according to a World Gold Council report.
It’s possible that soaring gold prices have deterred purchases. The precious metal hit an all-time high above US$2,400 ($3,239.52) an ounce in May, and has since edged lower as investors wound back bets on US rate cuts this year. When the PBOC published data on the May buying pause, gold suffered its biggest intraday fall in nearly three years.
