China’s Gold Buying Spree Comes to a Halt After 10 Months

(Bloomberg) --

China just hit the pause button on its gold-buying spree.

The People’s Bank of China kept holdings level 62.64 million ounces in October, unchanged from a month earlier, according to data on its website on Thursday. That holding pattern follows 10 straight months of accumulation that have boosted the nation’s stockpile by more than 100 tons.

Central-bank purchases have been an important feature of the global market this year, with official sector demand helping to support gold prices and offset a drop in demand from consumers. The backdrop to Beijing’s accumulation has been the nagging trade-war with the U.S., which has hurt growth.

Gold for immediate delivery traded 0.3% lower at $1,486.56 an ounce at 4:33 p.m. in Beijing, with losses following a statement from China that it’s agreed with Washington to roll back tariffs on each other’s goods in phases as the two sides work toward a deal. The precious metal is still up 16% this year.

©2019 Bloomberg L.P.