Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
China’s central bank added gold to its reserves for a 16th straight month in February, extending a long buying spree that’s helped to support the precious metal’s surge to a record high.
Bullion held by the People’s Bank of China rose by about 390,000 troy ounces last month, according to official data released Thursday. That takes total holdings to 72.58 million troy ounces, equivalent to about 2,257 tons.
Spot gold prices have rallied this week as investors bet on the possibility of US interest-rate cuts later this year. But central-bank buying — particularly by China — has also been a significant driver of gold’s strength since 2022.
Central banks bought 1,037 tons of gold last year, just shy of the all-time high of 2022, according to the World Gold Council. There’s a strong case for record buying by countries including China and Poland this year, the council said in January.
“There are number of central banks buying a combined total of around 1,000 tons a year, and that sends a message to the wider market” about possible long-term changes to the global monetary system, Rhona O’Connell, head of market analysis at StoneX Financial Ltd., said by phone. That’s important from a psychological and strategic standpoint, she added.
In the Chinese domestic market, buyers are showing strong ongoing demand for gold, undeterred by high prices, as concerns over the nation’s patchy economic recovery spur a flight to haven assets.
(By Sybilla Gross)
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