Data released Saturday by the People’s Bank of China revealed that it has resumed buying gold. It was the largest official buyer in the world in 2023 as it looked to be headed on a multi-year effort to diversify out of US dollars.
That changed this year as officials seemingly became price sensitive as buying stopped in May after the rise above $2400.
Gold weekly
The news of the PBOC shift on June 7 led to a $100 decline in gold prices.
Evidently, there has been a change of heart from the PBOC as holdings rose to 72.96 million fine troy ounces at the end of November, up from 72.80 million troy ounces, where they have been since May.
China doesn’t reveal its gold-buying strategy but people close to the PBOC have said they plan to expand them. This looks as though they’re no longer waiting/hoping for a decline to below $2400.
Expect a positive reaction to gold at the open and note that this is a positive seasonal time for gold.