BEIJING China's central bank held back on buying gold for its reserves for a third straight month in July, official data showed on Wednesday.

China's gold holdings stood at 72.8 million fine troy ounces at the end of July, unchanged from the end of May and June. The value of China's gold reserves grew to US$176.64 billion at the end of July from US$169.7 billion at the end of June.

"It is not surprising that the central bank has paused purchases, it gives us a clear indication about their mentality to prices, which is that it is way ahead of itself," said independent analyst Ross Norman.

The central bank is unlikely to resume purchases if bullion prices remain elevated, Norman added.

The People's Bank of China (PBOC) paused purchases in May amid surging gold prices. Spot gold prices have risen about 16% so far this year, hitting an all-time high of US$2,483.60 on July 17, aided by expectations of US interest rate cuts and geopolitical tensions.

The PBOC was the world's largest single buyer of gold in 2023, with its net purchases of 7.23 million ounces - the most by China for at least 46 years, according to the World Gold Council (WGC).

The PBOC has sometimes reported past gold purchases well after they occurred, according to the WGC and market experts.

  - Reuters