China has added almost 100 tonnes of gold to the reserves
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China has added almost 1[ads1]00 tonnes of gold to its reserves since it resumed its acquisition in December, with the constant accumulation run amid a rise in prices and the running of the trade war with Washington.
The People's Bank of China lifted garden revenue to 62.45 million ounces in August from 62.26 million a month earlier, according to data on the site this weekend. In terms of tonnage, the August inflow was 5.91 tonnes, after the addition of about 94 tonnes in the previous eight months.
Bullion is close to a six-year high as central banks including the Federal Reserve cut interest rates as a sign of a slump in the midst of the US-China trade war. Central bank purchases have been another important support for prices as authorities from China to Russia collect significant amounts of bullion to help diversify reserves. That buying steps are likely to continue in the coming years, according to Australia & New Zealand Banking Group Ltd.
Trade war restrictions, for China, or sanctions, as with Russia, "provide an incentive for these central banks to diversify," John Sharma, an economist at National Australia Bank Ltd., said in an email. " Economic uncertainty as prevailing provides gold as an ideal hedge and will therefore be sought by central banks globally. "
China has previously gone long periods without revealing increases in gold stocks. When the central bank announced a 57% jump in reserves to 53 3 million ounces in mid-2015, it was the first six-year update.
Spot gold rose 0.2% to $ 1,510.27 an ounce on Monday, thanks to a fourth straight monthly gain in August, rising Goldman Sachs Group Inc. and BNP Paribas SA are among banks that expect the metal to challenge $ 1,600 an ounce in the coming months.
(Adds comment in the fourth paragraph; sixth paragraph price). ) [19659009] – With the assistance of Emma Dong.
To contact the reporter about this story: Ranjeetha Pakiam in Singapore at rpakiam@bloomberg.net
To contact the editors responsible for this story: Phoebe Sedgman at psedgman2@bloomberg.net, Jake Lloyd-Smith, Keith Gosman
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