Gold monthly
China’s central bank did not announce any gold purchases in August, saying reserves remained at 72.80 million troy ounces. Announced purchases stopped in May after several months of accumulation.
Reports later suggested that the People’s Bank of China had become price sensitive.
- In February, the People’s Bank of China bought 390,000 ounces.
- In March 160,000
- In April 60000
Some things:
- Buy below $2000
- I don’t think I would trust the PBOC not to buy. In order to properly diversify, they need to buy, and they can’t wait for $2,000 at this point. It makes sense for the PBOC to hide their purchases to limit their advance purchases.
- I take this as a bullish sign that gold was able to rally from $2,000 to $2,500 with little support from the People’s Bank of China.
- If they report new purchases, I expect big gains.
When China first announced it was halting purchases in May, it caused a decent price correction, but buyers were waiting, and gold has been remarkably resilient, including during last week’s market turmoil.
See: A Very Simple Case for Buying Gold