China Boosts Its Reserves with 15 Tons of Gold in September

SadaNews - China added an estimated 15 tons of gold to its foreign exchange reserves in September, as central bank purchases of the precious metal accelerated following a seasonal lull during the summer, according to Goldman Sachs.

Analysts, including Lena Thomas, estimated that total central bank purchases of gold reached 64 tons in September, more than three times the 21 tons purchased in August. Goldman projected that purchases likely continued in November.

Gold Continues to Benefit from Central Bank Demand

Central bank purchases have been a key driver of gold's strong rise over the past three years, with prices reaching record levels above $4380 per ounce in October before retreating in recent weeks.

Analysts wrote in a memo on Monday: "We still see the accumulation of gold by central banks at high levels as a trend that extends for years, as these banks diversify their reserves to hedge against geopolitical and financial risks."

They added: "We maintain our assumption of an average monthly purchase of 80 tons by central banks" in the fourth quarter and through to 2026.

The bank still expects gold prices to reach $4900 per ounce by the end of next year, supported by ongoing central bank purchases and flows from private sector investors amid the Federal Reserve's monetary easing policy.