China remains insatiable when it comes to gold. For the tenth consecutive month, the country's central bank has been replenishing its currency reserves with this precious metal.
According to updated data, in August, the People's Bank of China purchased 29 tons of gold, increasing its purchases since the beginning of this year to 155 tons. Data from the previous month also showed the largest volume of central bank purchases since December.
The People's Bank of China has been the leading central bank among those replenishing their gold reserves. Its current purchasing power corresponds to the previous 10-month period that ended in September 2019.
It is believed that China is strengthening the international status of the yuan, allowing it to compete with the U.S. dollar as a global reserve currency through gold purchases. Accordingly, China will continue to acquire large volumes of the precious metal.
Economists speculate that with a more extensive de-dollarization trend, China will remain a long-term buyer of gold.
Thus, demand from central banks continues to support gold prices in the market.