The post China’s PBOC halts gold purchases in May after 18 months of buying appeared on BitcoinEthereumNews.com.

The People’s Bank of China (PBOC) paused gold purchases to its reserves in May, ending a massive buying spree that ran for 18 months, according to Bloomberg.  China’s central bank has been one of the biggest gold buyers for years, steadily stocking up bullion since 2022 amid rising geopolitical tensions. China held 72.80 million troy ounces of gold at the end of May, which remained constant from the end of April, the data showed. The value of China’s gold reserves increased to $170.96 billion at the end of May from $167.96 billion in April.  Market reaction   At the time of press, Gold price (XAU/USD) was up 0.12% on the day at $2,296.  Gold FAQs Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. Gold has an inverse correlation with the…

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Filed under: News - @ June 10, 2024 1:12 am