China's Central Bank Buys Record 20.2 Metric Tons of Gold in August
In August, China’s central bank added 650,000 ounces (approximately 20.2 metric tons) to its gold reserves—the largest monthly purchase since October 2023 and extending a buying streak to 22 consecutive months. The People's Bank of China increased holdings from the previous month's 640,000 ounces, bringing total reserves to 76.73 million fine troy ounces with an estimated value now at $350.08 billion. The surge in gold prices during August—up nearly 10% for the best monthly gain since January—was partly driven by a revival of the 'debasement trade,' as concerns over inflation and U.S. dollar weakness increased due to expanding Treasury debt buybacks. However, momentum waned toward month-end after Federal Reserve Chair Kevin Warsh signaled potential rate hikes.
Topics: bullion purchases China's central bank gold reserves