People's Bank of China has to add to its gold holdings: LBMA

With only 2% of reserves allocated to gold, the People's Bank of China has to start buying more bullion, said David Gornall, chairman of the London Bullion Market Association, which is holding a gold conference in Hong Kong.

"When comparing China to the U.S., it would seem that in China, gold asset allocation can only go in one direction, said Gornall.

He noted that the US has a 75% allocation to gold, and that gold prices overall have been supported by central bank buying.

"Will the gap between the amount of gold held in reserve by the developing markets and that of the developed world close?"

Table listing top gold holders. Image of People's Bank of China headquarters in Beijing