China has added nearly 100 t of gold to its reserves
SINGAPORE – China has added almost 100 t of gold to its reserves since it resumed buying in December, with the consistent run of accumulation coming amid a rally in prices and the drag of the trade war with Washington.
The People’s Bank of China raised bullion holdings to 62.45-million ounces in August from 62.26-million a month earlier, according to data on its website at the weekend. In tonnage terms, August’s inflow was 5.91 t, following the addition of about 94 t in the previous eight months.
Bullion is near a six-year high as central banks including the Federal Reserve cut interest rates as signs of a slowdown mount amid the US-China trade war. Central-bank purchases have been another key support for prices as authorities from China to Russia accumulate significant quantities of bullion to help diversify their reserves. That buying spree likely to persist in the coming years, according to Australia & New Zealand Banking Group.
Trade war restrictions, in the case of China, or sanctions, as with Russia, give “an incentive for these central banks to diversify", John Sharma, an economist at National Australia Bank, said in an email. “Also, with increasing political and economic uncertainty prevailing, gold provides an ideal hedge, and will therefore be sought after by central banks globally.”
China has previously gone long periods without revealing increases in gold holdings. When the central bank announced a 57% jump in reserves to 53.3-million ounces in mid-2015, it was the first update in six years.
Spot gold rose 0.2% to $1 510.27/oz on Monday. Prices, which capped a fourth straight monthly gains in August, have risen 18% this year. Goldman Sachs Group and BNP Paribas are among banks that expect the metal to challenge $1 600/oz within the coming months.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation