Central banks pile into gold as China leads buying spree

AI desk brief

Gold buying by central banks accelerated sharply in August to an estimated 79 tonnes, nearly 5x the historical monthly average, with China accounting for about 25 tonnes of the total, according to Goldman Sachs. That compares with 44 tonnes in July and a pre-2022 average of 17 tonnes a month, underscoring a structural reserve-diversification bid away from the US dollar.

The article says PBOC official data showed about 20 tonnes of additions in August and later confirmed its 23rd straight month of purchases in September, with October figures due around Nov. 7. Goldman and industry participants see sustained official-sector demand as a long-term support for gold, although higher rates, investor flows and geopolitics can still offset the impact in the near term.