In September, China continued its trend of increasing gold reserves, marking the 23rd consecutive month of accumulation. The People's Bank of China expanded its holdings by 740,000 ounces as gold prices fell below $4,000 an ounce.
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The central bank, recognized as one of the largest gold purchasers globally, has intensified its buying amid a drop in gold values, which decreased over 6% in September. This decline was influenced by soaring energy costs linked to ongoing conflicts in the Middle East, contributing to inflation and prompting the Federal Reserve to raise interest rates.
Despite the recent fluctuations in gold prices, many prominent money managers are optimistic about the long-term value of the metal and have begun rebuilding their holdings. Joachim Nagel, president of Germany's Bundesbank, noted that increasing government debt levels bolster the case for central banks to augment their gold reserves.
A recent World Gold Council survey of 74 central banks revealed that 45% plan to purchase gold in the coming year, the highest percentage since the survey’s inception in 2018, with just one central bank indicating intentions to decrease its purchases.