Have all a good weekend.
China's central bank has extended its gold purchases to 14 consecutive months, underscoring the government's continued demand for gold as prices rise to record levels. Bloomberg reported yesterday: The gold reserves of the People's Bank of China (PBOC) rose by 30,000 troy ounces last month, according to data released on Wednesday. This brings total purchases since November 2024, when the current buying cycle began, to around 1.35 million ounces, or 42 tons.Gold experienced volatile trading in the last month of 2025, rising to a record high before giving up some gains. Nevertheless, the precious metal achieved its best annual performance since 1979 due to central bank purchases, geopolitical fears, and the devaluation of government bonds and currencies in favor of alternative investments.According to a study published Tuesday by the World Gold Council, central banks bought nearly as much gold at the end of 2025 as they did in the first eight months of the year. The data underscores public sector demand as a key support for gold prices this year, as countries continue to view gold as a hedge against the dollar.The actual extent of the PBOC's purchases remains difficult to determine, as numerous estimates suggest higher actual purchases. Goldman Sachs estimates that China added 15 tons of gold to its reserves in September, while the country officially reported only about 1 ton of gold.
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