Central Bank of China continues to increase its gold reserves
With the latest purchases made by the Central Bank of China, its gold accumulation streak has reached its 22nd month.
According to the latest data released by the Central Bank of China, the country's gold reserves increased by 650,000 ounces, carrying the bank's uninterrupted purchasing streak into its twenty-second month.
Increase in Reserves
According to official data announced by the Central Bank of China, an increase of 650,000 ounces occurred in the bank's gold reserves.
With this latest move, the long-standing gold purchasing streak of the Central Bank of China has uninterruptedly reached its twenty-second month.
Market Developments and Prices
Trading under pressure for most of the year, bullion prices saw an increase of approximately 10 percent in August.
The US Treasury Department's plan to increase bond buybacks fueled concerns over inflation and a weakening dollar.
Investor Trends
These concerns caused investors to move away from traditional markets and turn towards alternative safe-haven assets such as gold.
High bond yields continue to pose an obstacle in the short term for the non-yielding precious metal.
Long-Term Outlook
The gold accumulation that the Central Bank of China has resolutely continued for a long time is shaping the general dynamics in the market.
Combined with the purchases of other investors, this situation gives confidence to those expecting a rise in gold regarding the long-term outlook.