On Kitco, Mr. Krishan Gopaul, senior analyst at the World Gold Council, said that the amount of gold held by the People's Bank of China (PBOC) has not changed for 3 consecutive months. Thus, in July, the PBOC still did not buy more gold.

China currently holds 2,264.3 tons of gold, up 22% from the end of 2018. As gold prices continue to rise, the value of PBOC's gold holdings increased to $176.64 billion at the end of July.

Ross Norman, CEO of Metals Daily, told Reuters it was no surprise that the People's Bank of China had paused its gold purchases. Rising gold prices were the main reason. Central banks are unlikely to buy more gold if prices remain as high as they are.

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China has not bought gold reserves for 3 months. Photo: Kitco

The PBOC broke its 18-month streak of net gold purchases in May, sending shockwaves through the gold market and triggering a sharp sell-off. Big players like the PBOC have been buying gold regularly, which has helped stabilize gold prices.

Colin Cieszynski, chief market strategist at SIA Wealth Management, said the rise in gold prices has increased the PBOC’s gold purchase budget. The market is asking whether the “shark” has bought enough gold or is pausing for various reasons. The answer remains unknown.

In 2023, the PBOC bought about 224.9 tons of gold, one of the largest gold buyers and equivalent to about 5% of total global gold demand.

Early morning of August 8, the world spot gold price stood at around 2,387.6 USD/ounce. The price of gold futures for December 2024 on the Comex New York floor was at 2,427.8 USD/ounce.