SHANGHAI/BEIJING: China's central bank reported its biggest monthly increase in gold reserves in more than two and a half years in June, official data showed on Tuesday, although bullion prices tumbled.China's central bank maintained gold purchases for a 20th straight month, with its reserves hitting 75.44 million fine troy ounces by the end of June, versus 74.96 million a month earlier. The 480,000-ounce rise, equivalent to near 15 metric tons, marked the biggest monthly addition since October 2023, when holdings rose by 740,000 ounces, according to data from the People's Bank of China.Also read: India has got a $5 trillion sleeping giant: Can govt wake it up?The value of the country's gold reserves, however, declined, amounting to $303.72 billion at the end of last month, down from $340.75 billion in May, the data showed.The rise came despite a sharp decline in gold prices. Spot gold tumbled 11.65% in June, the worst since October 2008, while breaking below the $4,000 an ounce mark briefly. The dollar strengthened and traders priced in a higher chance that the Federal Reserve would keep interest rates elevated. The Iran war also kept concern that inflation could remain sticky despite peace talks.
China gold reserves rise most since 2023 even as bullion tumbles
China's central bank reported its largest monthly gold reserve increase in over two years. The People's Bank of China added nearly fifteen metric tons to its holdings. This occurred even as gold prices experienced a significant sharp decline during June. The value of China's gold reserves decreased despite the increased quantity of bullion. Traders anticipated higher interest rates and a stronger dollar impacting the market.
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