The PBOC is China’s central bank and the biggest buyer of gold in the world. Data hit on Friday that the Bank bought zero gold in May:
In May 2024 gold prices hit a record high, and it looks like the PBOC stepped back from reserve buying in response. The Bank had been buying in each of the preceding 18 months.
China’s purchases dwindled in March and April:
- in February the PBoC bought 390,000 ounces
- in March, 160,000
- in April, 60,000
- in May, 0
The pause in May had taken heat out of the rally and the news on Friday pulled the rug.
The cessation of buying in May should be viewed as a pause, the Bank is not done buying. USD2275/80 and thereabouts is some technical support on the daily chart.