China’s Gold-Buying Spree Tops 100 Tons During Trade War

China has added more than 100 tons of gold to its reserves since it resumed buying in December, reinforcing its standing as one of the major official accumulators as central banks stock up on the precious metal.

The People’s Bank of China picked up more gold last month, raising holdings to 62.64 million ounces in September from 62.45 million in August, according to data on its website. In tonnage terms, the latest inflow totals 5.9 tons, and follows the addition of about 99.8 tons over the prior nine months.

Bullion hit the highest level in more than six years in early September as slower global growth, the trade war and interest rate cuts spurred investor demand. Central banks have been major buyers this year, too, especially in emerging markets. Those official purchases will likely continue as protectionist policies and geopolitical concerns add to demand, according Suki Cooper, precious metals analyst at Standard Chartered Bank.

While a 10th straight month of accumulation marks a steady buying pattern for the PBOC, China has in the past gone for long periods without disclosing moves in gold holdings. When the central bank announced a 57% jump in reserves to 53.3 million ounces in mid-2015, it was the first update in six years.

Spot gold rose as much as 0.4% to $1,511.31 an ounce on Monday and traded at $1,507.58 in early Asian trade. While prices dropped 3.2% in September, they are still up nearly 18% this year. […]