Report: People's Bank of China holdings likely 2.5X higher than thought

The world's central banks changed from being net sellers of the metal in 2009 after two decades of decreasing holdings.

Gold movements by central banks are closely watched by the market. None more so than the People's Bank of China.

China's gold reserves are officially put at 1,054 tonnes – a number officials haven't updated since April 2009.

Rumours about massive purchases – up to 6,000 tonnes according to some estimates or a more modest 300 tonnes over the first six months of 2013 – continue to circulate as the country seeks to diversify its massive foreign exchange reserves which are mostly held in US dollars.

Gold makes up little more than 1% of the country's $3.8 trillion in reserves compared to more than 70% for the United States which holds 8,166 tonnes of gold in vaults.

Read More: www.mining.com/chinas-changing-coal-consumption-threatens-australia-commodities-futures-99793/