China’s Central Bank Stops Gold Buying Spree: Spot Prices Drop

(USAGOLD – 6/10/2024) Gold and silver prices are slightly higher in early U.S. trading on Monday. It’s a pivotal week for U.S. data, marked by inflation statistics and the FOMC meeting. Gold is trading at $2306.99, up $13.21. Silver is trading at $29.76, up 60 cents. In May 2024, China’s central bank, the People’s Bank of China (PBOC), paused its gold purchases after 18 consecutive months of buying, coinciding with spot gold prices reaching a record high of $2,449.89 per ounce on May 20. This pause led to a decline in gold prices, which fell by 2.7% to $2293.59 per ounce. The PBOC’s gold reserves remained unchanged at 72.80 million troy ounces, valued at $170.96 billion at the end of May. Despite this pause, experts believe China is not done buying gold but is likely waiting for more favorable prices. The cessation of purchases contributed to a broader decline in gold prices, exacerbated by a strong U.S. jobs report that reduced expectations for imminent U.S. interest rate cuts.

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