(Bloomberg) — China’s central bank did not buy gold for a second month in June as the precious metal fell from a record high.
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According to official data released on Sunday, the People’s Bank of China held its gold bullion level at 72.8 million troy ounces at the end of last month. The central bank opted not to increase reserves in May, ending an 18-month buying spree that helped push gold prices to their highest level ever.
Some analysts still believe buying will resume as the world’s second-largest economy seeks to diversify its reserves and protect against currency depreciation. Around 20 central banks still expect to increase their gold holdings in the coming year, driven by rising geopolitical and financial risks, according to a report by the World Gold Council.
Rising gold prices may have deterred people from buying. The precious metal hit a record high of more than $2,400 an ounce in May and has since edged lower as investors reduced bets on U.S. rate cuts this year. When the People’s Bank of China released data on the May buying pause, gold suffered its biggest intraday drop in almost three years.
–With the help of Tian Ying.
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