Market Talk – August 7th, 2023

August 07, 2023

by Martin Armstrong Armstrong Economics

ASIA:

China raised its gold reserves for a ninth straight month in July as central bank purchases continue to underpin prices of the precious metal. Bullion held by the People’s Bank of China rose by 740,000 troy ounces, the central bank said on Monday. That’s equivalent to about 23 tons. Total stockpiles now sit at 2,137 tons, with around 188 tons added in a run of purchases that began in November.

China’s central bank governor, Pan Gongsheng, has promised to direct more financial resources towards the private economy, indicating a renewed commitment from Beijing to boost confidence among private companies as the economy faces weakening momentum. During a meeting with several private firms, including those in property, aluminum, and agribusiness sectors, Pan Gongsheng announced that the People’s Bank of China (PBOC) will introduce guidelines to support these private enterprises.