China Adds 740,000 Ounces of Gold to Reserves in September

China added more gold to its reserves in September, extending the People's Bank of China's buying streak to 23 consecutive months.

The People's Bank of China added 740,000 ounces of gold to its reserves in September, extending its monthly buying streak to 23 months. [Photo: Max12Max, Wikimedia Commons]

The People's Bank of China increased its gold holdings by 740,000 troy ounces in September, according to data released Wednesday, continuing a prolonged accumulation of the precious metal.

China has been among the world's major official-sector gold buyers.

The World Gold Council has reported that central banks have continued to accumulate gold despite fluctuations in prices.

A World Gold Council survey of 74 central banks conducted earlier this year found that 45 percent of respondents expected to increase their gold holdings over the following 12 months.

That was the highest proportion recorded in the survey's history.

Gold prices fell sharply in September as higher energy prices and inflation concerns affected financial markets.

Nevertheless, central banks and major investors have continued to cite diversification, geopolitical risk and concerns about government debt as reasons for maintaining or increasing gold holdings.

Bundesbank President Joachim Nagel said this week that gold continues to have a role as a reserve asset amid geopolitical tensions and concerns related to high debt levels.