China's central bank, the People's Bank of China (PBOC), halted its 18-month gold buying spree, causing spot prices for gold to drop by 1.5%.

This decision marked a significant shift after the PBOC had been aggressively stockpiling gold since November 2022, driving prices to record highs.

The pause in buying suggests that China may be hesitant to purchase gold at current record-high prices, signaling a potential cooling of demand.

Despite this, analysts believe that China's appetite for gold may not be fully quenched, leaving the precious metal vulnerable to shifts in demand.