China resumes buying gold after sixmonth pause
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Dec 9 Reuters Gold prices gained on Monday, with support from top consumer China39;s central bank resuming gold purchases after a sixmonth hiatus, while investors awaited U.S. inflation data this week for clues into the Federal Reserve39;s next move.

Spot gold gained 0.5 at 2,646.69 per ounce, as of 0741 GMT. U.S. gold futures were up 0.3 to 2,668.20.

Gold is supported by headlines that China39;s central bank resumed purchasing gold in November, which could be good news for gold bulls in knowing that they have the People39;s Bank of China PBOC behind them to underpin some strength for bullion prices, IG market strategist Yeap Jun Rong said.

Resumption of its purchases may support Chinese investor demand, which has been muted since the PBOC paused its 18month buying streak in May.

The decision to increase gold holdings, particularly following Trump39;s recent election victory, reflects the PBOC39;s proactive approach to safeguarding economic stability amid evolving global conditions, OCBC analysts said.

Robust central bank buying, monetary policy easing and geopolitical tensions have driven gold to multiple record highs this year, setting the metal on track for its best year since 2010 with a nearly 28 increase so far.

Gold is seen as a safehaven investment during times of economic and political uncertainty and thrives in a…