Gold’s value slumps after China’s Central Bank halted it’s 18 month buying spree

Last month, China’s central bank broke its streak of gold purchases, ceasing an 18-month-long buying spree.

This halt in buying activity came after a period during which China’s purchases, along with those of other central banks, contributed to driving the price of gold to a record high in May.

Following the announcement by the People’s Bank of China that its bullion holdings remained unchanged at the end of May, spot prices for gold experienced a 1.5% decline. Since November 2022, the bank had been actively accumulating gold reserves, a trend observed among several central banks globally amidst escalating geopolitical tensions.