Helping the recent increase in the gold price is interest from central banks, particularly the People’s Bank of China.
The bank bought 16.2 tonnes in August, on top of the 19 tonnes in July and the 604 tonnes it bought between 2009 and June 2015.
Additionally, while 67% of reserves in Germany, Italy, France and the U.S. are made up of gold, China only has 1.6% of its reserves in gold, and therefore China may need to accelerate its gold holdings.
