(Bloomberg) – China might have bought 300 tonnes of gold in the 1st half of this year to expand its foreign-exchange reserves; the world’s largest. (According to Philip Klapwijk of Precious Metals Insights Ltd.)
China has not stated any alterations to state gold reserves ever since consultants in 2009 said bullion holdings added up to 1,054.1 tonnes.
China’s possible purchases, the second-biggest gold user, could have limited price delines, said Klapwijk, who has observed precious metals for 25 years. Bullion is 12% over the 34-month low it reached in June. The yellow metal accounts for 1.3% of the foreign-exchange reserves in China, in comparison with 73% of the U.S. (According to the World Gold Council)
Klapwijk said, referring to bullion declared to the International Monetary Fund “The probability is that there’s some form of official purchases that have not yet been reflected in the monetary gold reserves,” and also added “Undoubtedly, that’s provided support for prices, which could have been weaker.”
In Singapore, gold for immediate delivery changed at $1,319.34 an oz by 2:37 p.m. The yellow metal moved in a bear market in April and fell 23% in the second quarter, the sharpest fall since at least 1920.
China, as of September held $3.66 trillion in foreign-exchange reserves, 1,054.1 tonnes in gold holdings, the fifth largest country after the U.S. with 8,133.5 tonnes, the biggest, and Germany with 3,390.6 tonnes. (World Gold Council data showed)