PBOC Buys 650,000 Ounces of Gold in August, Largest Monthly Increase Since October 2023

China's central bank bought 650,000 ounces of gold, or about 20 tonnes, in August, up from 640,000 ounces in July and the largest monthly increase since October 2023, according to Jiemian News. The purchase extended its streak of monthly gold buying to 22 months. Jiemian News also cited a World Gold Council survey showing that nearly 90% of central banks expect global official gold reserves to keep rising over the next 12 months, while 45% plan to increase their own gold holdings. The report said spot gold was holding above $4,350 an ounce on September 9 and looked set to end a three-day losing streak after falling more than 4% over the past two weeks. It attributed the pullback to higher U.S. Treasury yields, hawkish remarks from Fed Chair Warsh, and stronger-than-expected U.S. nonfarm payrolls data. Market expectations now point to a total 50-basis-point rate hike by the Federal Reserve this year. Jiemian News said the near-term pressure on gold could continue as real yields rise and the dollar strengthens.