Data released on Saturday by the People's Bank of China revealed that they have started buying gold. It was the world's largest official buyer in 2023 as it looked to be led on a multi-year effort to diversify out of the US dollar.
That changed this year as officials appeared to be price conscious as buying stopped in May after the rise above $2400.
Gold every week
The news of the PBOC move on June 7 resulted in a $100 decline in gold prices.
Clearly, there has been a change of heart from the PBOC as holdings rose to a tidy 72.96 million troy ounces at the end of November, up from 72.80 million troy ounces, where they have been since May.
China does not reveal its gold buying strategy but people close to the PBOC have said they plan to expand them. This looks like they are no longer waiting/hoping for a decline below $2400.
Expect a positive response to the gold at the opening and feel that this is a good seasonal time for gold.
