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But gold prices have risen so much that even the People’s Bank of China seems to be dormant.
on friday, Official data China’s gold holdings were shown to be unchanged in May from the previous month, meaning the central bank is not buying gold.
The People’s Bank of China’s halt to monetary easing has left gold “vulnerable to further downward pressure,” commodity strategist Eva Manthey said. ING Bankon monday.
benchmark Spot Gold Price That’s about $2,300 an ounce, about 6% lower than the all-time high of about $2,450 an ounce hit on May 20.
Prices for gold, a traditional safe haven asset, have soared this year on global geopolitical tensions, up about 11% so far this year. Economic worries and a weakening yuan have also seen people in China buy up the metal as a store of value.
But “gold’s record high prices may dampen demand for now,” Manthey wrote.
China’s central bank gold purchases began to slow in April 60,000 troy ounces Of precious metals. This is 160,000 oz in March and In February, it was 390,000 ounces.
The People’s Bank of China had been buying gold for 18 consecutive months before suspending purchases last month, making it the world’s largest institutional investor, according to an industry group. World Gold CouncilChina’s central bank has purchased 225 tonnes of gold in 2023. In second place was the central bank of Poland, which purchased 130 tonnes of gold.
The council’s chief executive, David Tait, said: Reuters China said on Monday it was “just waiting and watching. If prices improve to the $2,200 per ounce level, the rally will continue again.”