China Central Bank Adds 740,000 Ounces of Gold as September Prices Fall
China’s central bank increased its gold reserves by 740,000 ounces in September, lifting holdings to 77.47 million fine troy ounces. The People’s Bank of China extended its gold-buying streak to 23 consecutive months, official data showed. The increase equals about 23 metric tons.
Gold prices fell more than 6% during September as higher U.S. Treasury yields, a stronger dollar, and expectations for further Federal Reserve rate hikes pressured bullion. Despite the price decline, China continued accumulating gold, reinforcing its broader reserve-diversification strategy. The value of China’s gold reserves fell to $323.52 billion from $350.08 billion in August because of the lower bullion price. Reuters reported that China’s purchases have continued despite sharp swings in gold prices this year.
Why it matters
China's continued accumulation provides a source of structural demand for gold even during price corrections. Investors are also watching central-bank buying as global markets adjust to higher yields and shifting monetary policy.
