China's central bank, the People's Bank of China (PBC), extended its gold buying hiatus for a second month in June, according to official data released on Sunday. The PBC's gold holdings remained unchanged at 72.8 million troy ounces at the end of June. This follows their decision to forgo adding to reserves in May, marking the end of an 18-month buying spree that contributed to record highs for gold prices. Analysts remain divided on the future of these purchases. Some believe China, the world's second-largest economy, will resume accumulating gold to diversify its reserves and hedge against potential currency depreciation. This aligns with a World Gold Council report suggesting roughly 20 central banks plan to increase their gold holdings in the coming year, driven by heightened geopolitical and financial uncertainties. However, another theory suggests the surge in gold prices may be deterring further purchases by the PBC. Gold hit a record high above $2,400 per ounce in May but dropped slightly as investor hopes for US interest rate cuts faded. Attribution: Bloomberg
