China's central bank extended its gold-buying streak to a 21st consecutive month in July, pushing reserves to $306.35 billion. The build-up comes as gold consolidates above $4,000 an ounce, with dollar weakness and the ongoing US-Iran war shaping the outlook.
China's central bank increased its gold reserves for a 21st consecutive month in July, with holdings rising to 76.08 million troy ounces from 75.44 million troy ounces in June. The reserves were worth $306.35 billion at the end of July, up from $303.72 billion in June.
Gold's own price dipped in May but stabilized between June and July, and a rebound at the start of August could prompt more buying flows to return, InvestingLive said.
Meanwhile, the dollar has come under pressure after the US administration pulled back from helping Japan defend the yen, a shift that is starting to realign conditions in gold's favor. Bullion has held just above the $4,000 mark for two months of consolidation.
However, the US-Iran war continues to rage on, and that remains a factor to watch. Higher bond yields and a more hawkish outlook from major central banks could still put a dent in gold's ambitions in the second half of the year.
InvestingLive noted the published numbers are only what Beijing officially reports, and that independent estimates from the World Gold Council suggest China's actual holdings may be double what it discloses.
Source: Investinglive RSS Breaking News Feed
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