China’s gold rush continues

Record highs: An employee sorts gold ornaments at a jewellery shop in Lianyungang, Jiangsu province.

INCREASING gold holdings remains a long-term strategic direction for China’s central bank as it works to optimise the composition of its international reserves, while the fundamental drivers supporting a long-term rise in gold prices remain intact, experts say.

China’s gold reserves stood at 74.15 million ounces as of the end of December, up 30,000 ounces from the previous month, with the increase matching that of the prior month. This marked the 14th consecutive month of gold purchases by the People’s Bank of China (PBoC), the country’s central bank, according to recent official data.