China's Central Bank Ups Gold Reserves for Fourth Straight Month in February
China's gold reserves rose to 73.61 million fine troy ounces at the end of February from 73.45 million at the end of January, as the central bank kept buying the precious metal for a fourth straight month, further fueling investor sentiment and supporting the gold price amid rising geopolitical uncertainty and trade tensions with the US. The PBOC's continued purchases are seen as a key factor in underpinning gold prices, but also pose questions about the sustainability of such policies. Central banks' gold buying has been instrumental in driving gold prices up over the past two years.
- This uptrend in central bank gold buying highlights the evolving role of monetary policy in shaping precious metal markets, where state-backed purchases can have far-reaching implications for global supply and demand balances.
- Will the PBOC's ongoing gold buying effort be enough to shield China's economy from potential downturns triggered by trade tensions with the US and rising domestic debt?