Central bank of China continues massive gold purchases

The People's Bank of China continues its massive gold acquisitions. Through these actions, China's and other financial regulators are supporting the precious metals market and keeping gold prices around $3,300 per ounce. This information was provided by the news agency Kitco.com.

According to Krishan Gopaul, an analyst at the World Gold Council (WGC), citing official data from the People's Bank of China, the regulator increased its gold reserves by another 2 tonnes in June.

The Chinese central bank has been buying gold for eight consecutive months, though the pace of purchases has recently slowed. Specifically, the regulator acquired 10.3 tonnes in December and 5 tonnes in January.

Gopaul believes current trends will allow the regulator to increase its gold reserves to 2,299 tonnes.

Despite the current downward trend in demand for the precious metal, analysts at China's central bank see no reason for the government entity to stop its purchases. As Kitco experts note, ongoing geopolitical uncertainty will continue reinforcing gold's role as a neutral monetary asset.