The People’s Bank of China (PBoC) continued to expand its gold holdings in September, marking the 11th consecutive month of bullion purchases, according to official data released on Tuesday. The sustained buying streak underscores Beijing’s ongoing strategy to diversify its reserves and reduce reliance on the US Dollar (USD).
Key data highlights
- China’s gold reserves stood at 74.06 million fine troy ounces at the end of September, up from 74.02 million ounces in August.
- The value of China’s gold holdings rose to $283.29 billion from $253.84 billion a month earlier.
- China’s total foreign exchange reserves increased to $3.339 trillion in September from $3.322 trillion in August.
Market reaction
At the time of writing, gold (XAU/USD) was trading 0.05% lower on the day at $3,958, as investors weighed steady central bank demand against a stronger US Dollar and rising bond yields.
