China's CB ups gold reserves for fourth straight month in February

China's gold reserves rose to 73.61 million fine troy ounces at the end of February from 73.45 million at the end of January, as the central bank kept buying the precious metal for a fourth straight month.

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China's gold reserves were valued at $208.64 billion at the end of last month, up from $206.53 billion at the end of January, central bank data showed on Friday.

"The PBOC's purchases are an important factor underpinning gold, so a continuation of its buying in February could help to build further strength behind the gold price," said Frank Watson, market analyst at Kinesis Money.

US import tariff fears, their potential effect on global economic growth and inflation as well as geopolitical uncertainty drove gold to a record high on February 24. Bullion rose by 27 per cent in 2024, the most in 14 years.

Washington has so far added an extra 20 percentage points on existing tariffs for Chinese goods, with the latest IO-point increment enforced on Tuesday, drawing Beijing's retaliation.

China unlocked more fiscal stimulus on Wednesday, promising greater efforts to support consumption and cushion the impact of an escalating trade war with the US, while China's state planner said the country would accelerate the annual stockpiling of strategic commodities.

Global central banks, a major source of gold demand, bought more than 1,000 metric tonnes of the metal for the third year in a row in 2024 and are expected to remain active buyers in 2025, according to the World Gold Council.