PBoC keeps gold buying on hold for second month

The PBoC in Beijing. — Bloomberg

BEIJING: China’s central bank didn’t buy any gold for a second month in June, as the precious metal edged lower from a record high.

Bullion held by the People’s Bank of China (PBoC) was unchanged at 72.8 million troy ounces at the end of last month, according to official data released yesterday.

The central bank opted not to add to reserves in May, ending an 18-month buying spree that helped push gold prices to their highest ever.

Some analysts still believe that purchases will resume as the world’s second-biggest economy seeks to diversify its reserves and guard against currency depreciation. About 20 central banks still expect to raise their gold holdings in the coming year, spurred by heightened geopolitical and financial risks, according to a World Gold Council report.

It’s possible that soaring gold prices have deterred purchases. The precious metal hit an all-time high above US$2,400 an ounce in May, and has since edged lower as investors wound back bets on US rate cuts this year.

When the PBOC published data on the May buying pause, gold suffered its biggest intraday fall in nearly three years. — Bloomberg