People's Bank of China Resumes Gold Purchases at Year-End

Resumption of Gold Purchases in December After a 6-Month Hiatus

Goldman Sachs: "Gold Unlikely to Reach $3,000 This Year"

The People's Bank of China temporarily halted gold purchases last year due to a surge in gold prices but resumed increasing its gold reserves in December.

According to Bloomberg on the 7th (local time), the gold bullion held by the People's Bank of China increased to 73.29 million troy ounces in December, up from 72.96 million ounces in November. The bank had suspended purchases for six months until November last year as gold prices rose.

This move demonstrates the bank's intent to diversify its reserves despite historically high gold prices. Last year, gold prices continued to rise due to the U.S. interest rate cuts, demand for safe assets, and ongoing purchases by global central banks.

However, the gold rally cooled after Donald Trump won the U.S. presidential election.

Goldman Sachs Group revised its prediction that gold would reach $3,000 per ounce by 2025, stating earlier this week that it would be difficult for gold to reach $3,000 this year. This is due to the expectation that the Federal Reserve will cut interest rates less than initially anticipated, according to Goldman.

Guest Reporter Kim Jung-ah kja@hankyung.com