China's gold reserves rise in August

China's official gold reserves rose to 69.62 million ounces at the end of August, up from 68.69 million ounces a month earlier, marking the tenth consecutive month of incline, according to the State Administration of Foreign Exchange on Thursday.

From November to August, China added 6.98 million ounces in gold reserves, bringing the country's official gold reserves to a new record high, data compiled by market tracker Wind Info showed.

"It is very likely for the People's Bank of China, the country's central bank, to further boost its gold reserves," said Huang Jun, an analyst at financial trading platform FXTM. "As China reduces holdings in US debt, the country needs to increase holdings in other assets, and gold is a rare, high-quality credit asset in the current environment."

The trend of China and many other developing economies boosting gold holdings may continue to support gold prices in the mid and long term, though gold prices may feel the pressure of a strong US dollar in the short term, Huang said.