(Bloomberg) -- China’s central bank did not add any gold to its reserves for a fourth straight month in August as prices for the precious metal rose to a record.
Bullion held by the People’s Bank of China was unchanged at 72.8 million troy ounces at the end of last month, according to official data released on Saturday. The PBOC had added to its stockpiles for 18 consecutive months up to April this year, helping to underpin the strength in bullion prices.
The halt in buying by the PBOC adds to signs that soaring prices are crimping global central bank demand, after strong purchases in the first half. Still, several analysts see central bank buying remaining a key driver for bullion this year.
Bullion — up more than 20% this year — rose to its highest ever in August as traders ramped up bets on monetary easing from the Federal Reserve. While the lofty prices have recently hurt retail sales of discretionary items like jewelry in China, gold bars and coins are increasingly popular as investors seek to safeguard their wealth from weak economy.
--With assistance from Tian Ying.
©2024 Bloomberg L.P.
