China’s central bank, the People’s Bank of China (PBOC), continued to bolster its gold reserves in February, marking the fourth consecutive month of expansion, Bloomberg reports.
This move comes as the precious metal has been enjoying a significant rally, reaching record highs.
Data released Friday revealed that the PBOC increased its gold holdings by 0.16 million troy ounces last month. The central bank resumed its gold buying activities in November after a six-month hiatus, following an earlier 18-month period of consistent accumulation.
This continued accumulation of gold underscores the PBOC’s strategic objective of diversifying its reserves. This strategy aligns with a growing global trend among central banks towards increasing their holdings of the precious metal. Speculation surrounding a potential revaluation of US gold stockpiles has also fueled market interest, highlighting the rising significance of gold as a crucial reserve asset.
Gold has consistently broken records this year, despite a temporary dip last week due to profit-taking. The surge in gold prices has been attributed to several factors, including its appeal as a safe-haven asset amidst rising geopolitical tensions and sustained buying by central banks worldwide.
Analysts predict further growth in the value of gold, with Goldman Sachs Group Inc. forecasting a potential price of $3,300 an ounce by the end of the year.
