China's central bank to return to gold buying as prices ease, analysts say

China's central bank to return to gold buying as prices ease, analysts say

Story by Brijesh Patel and Ashitha Shivaprasad

 • 5d • 2 min read

By Brijesh Patel and Ashitha Shivaprasad

SINGAPORE (Reuters) -China, the biggest official sector buyer of gold, is expected to resume its bullion shopping spree once prices ease from the record highs hit in May, as the fundamental case for the metal remains, industry players said at a conference this week.

After adding to its gold reserves for 18 consecutive months, official data from the People's Bank of China (PBOC) showed its holdings were unchanged in May, sending global spot prices down sharply on Friday. [GOL/]

"China's data did show a pause," David Tait, CEO of the World Gold Council (WGC), told Reuters on the sidelines of the Asia Pacific Precious Metals Conference in Singapore.

"(But) they are just waiting and watching. If prices correct to the $2,200 per ounce level, they will resume again."

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