China’s central bank expanded its gold reserves in November, ending a six-month pause in purchases after prices for the precious metal rose to a record.
Bullion held by the People’s Bank of China climbed by 160,000 fine troy ounces last month to 72.96 million fine troy ounces, according to official data released on Saturday. The PBOC had added to its stockpiles for 18 consecutive months up until April this year, helping to underpin the strength in bullion prices.
The resumption in purchases shows the PBOC is still keen to diversify its reserves and guard against currency depreciation, even with gold at historically expensive levels.
Gold hit an all-time high in October, driven by increasing haven demand amid tensions in the Middle East and Ukraine, as well as uncertainty surrounding the recent US presidential election. The metal has erased some of the gains after Donald Trump decisively won the US presidential election and geopolitical tension in the Middle East showed signs of de-escalating.
With prices up almost 30% so far this year, demand for bullion has eased among Chinese consumers. Retail sales of discretionary items like jewelry have cratered, though gold bars and coins have held up for the first three quarters as investors seek to safeguard their wealth from a weakening economy.