The People’s Bank of China has added to its gold reserves for a sixteenth-straight month, data has shown.
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The price of XAUUSD has found resistance at the $4,243 level and has retreated to the $4,194 mark. The key support level would be at the $4,000 level.
The People’s Bank of China continued its recent buying with a purchase of 30,000 troy ounces, according to data released by the institution. The accumulation drive, which began in November 2024, adds further to China’s diversification of foreign reserves.
The country is reducing its previous reliance on the U.S. dollar, while its offer to store gold for other central banks positions adds to the country’s growing importance as a hub in the international bullion system.
The PBOC’s total holdings have reached 74.1 million troy ounces (2,305.6 tons), positioning the country as a leader in global gold reserves. Meanwhile, data from the World Gold Council showed that global central bank buying was higher in October following a mid-year slowdown.
Gold’s price resilience is largely driven by investor expectations that the U.S. Federal Reserve will again cut interest rates at its next policy meeting on December 9–10. That would bring the benchmark rate down to 3.50–3.75%. Recent speculation over the next Fed chair has also positioned markets for a more dovish leader of the central bank.
As of December, gold has already posted its second-best annual performance since 1979, with gains approaching 60% since January. China’s central bank purchases highlight that it is likely to be a buyer on dips over the coming year.
