The move highlights PBOC’s commitment to diversify reserves, as part of a broader trend that draws global central banks towards the precious metal
CHINA’S central bank expanded its gold reserves for a fourth month in February, as the precious metal rallied to a record high.
Bullion held by the People’s Bank of China (PBOC) rose by 0.16 million troy ounces last month, according to data released on Friday (Mar 7). The central bank resumed increasing gold reserves in November after a six-month pause that followed an 18-month buying spree.
The move highlights PBOC’s commitment to diversify reserves, as part of a broader trend that draws global central banks towards the precious metal. The speculation about the US revaluing its gold stockpiles has also attracted market attention, signalling bullion’s rising importance as a reserve asset.
Gold has set successive records this year, though profit-taking temporarily dampened the rally last week. The rise has been partly driven by haven demand amid geopolitical tensions, as well as central bank buying.
Bullion is seen as having further room to run, with analysts from Goldman Sachs saying last month that they expected it to rise to as much as US$3,300 an ounce by the end of the year. BLOOMBERG
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