With 1 trillion and 82 billion worth of gold in deposit, what will the price of gold be now that China's central bank has stopped purchasing it?

In August, the People's Bank of China will not add gold to its reserves for the fourth consecutive month. The bank has made this choice, per the official data that was made public on Saturday, according to Reuters. As of the end of last month, China has 72.8 million troy ounces of gold in its possession. By the end of July, the value of gold held in reserve had climbed from 176.64 billion dollars to 182.98 billion dollars.

This year, the price of gold is rising. Because the demand for gold has increased due to political and economic turmoil, as well as the possibility of a decline in US interest rates and the need for a safe haven. Numerous nations' central banks are also making purchases. This year, there has been a 21% increase in the price of gold. Prior to ceasing purchases, the People's Bank of China had been buying gold for eighteen months in a row.

According to Reuters, this central bank was the biggest purchaser of gold globally in 2023. Chinese investors' demand has decreased in recent months as a result of their choice to stop purchasing. Purchases by the bank are anticipated to continue eventually.