The People's Bank of China (PBOC) added about 70,000 ounces of gold (about 2 tons) to its reserves in April. Thus, over the past 6 months, the amount of gold held has increased by nearly 1 million ounces, equivalent to about 30 tons of gold, according to Bloomberg.
Based on PBOC data, Krishan Gopaul, a market analyst at the World Gold Council (WGC), said the agency has been stockpiling gold for the sixth consecutive month, after stopping buying gold for more than half a year. As of the end of April, China's total gold reserves were more than 2,290 tons.
The move comes as gold prices continue to set records, with an increase of nearly 30% since the beginning of the year. Gold has become a favorite safe haven for investors and many central banks, including China. The world is rushing to buy gold to diversify its reserve portfolio and reduce its dependence on the US dollar.
In fact, not only China, many other countries are also looking to diversify their reserve assets, reducing their dependence on the US dollar. According to Goldman Sachs, global central banks have increased their gold purchases by five times since 2022, after the West froze Russia's foreign exchange reserves.
As of the end of April, China's total gold reserves were more than 2,290 tons (Photo: Bloomberg).
Global central banks have increased their gold purchases fivefold since 2022, after the West froze Russian assets, according to Goldman Sachs, in what experts called a “structural shift” in the management of foreign exchange reserves.
In China, investors have also shown strong interest in gold. Trading volumes on the Shanghai Futures Exchange (SHFE) have surged to record levels in recent weeks. In response to the domestic gold “thirst”, the PBOC has granted additional gold import quotas to commercial banks.
In parallel with this move, Beijing has also implemented a series of policies to support the economy , including lowering interest rates and reducing the reserve requirement ratio for banks. China is also preparing for trade negotiations with US officials scheduled to take place this week.
The People's Bank of China currently holds about 8% of its foreign exchange reserves in gold, well below the global average of about 20%. "The PBOC is cautious but determined. They will continue to buy gold, especially when prices are right and the trend of reducing holdings of US dollar-denominated assets is becoming more evident," Ross Norman, CEO of Metals Daily, said in a report.
Source: https://dantri.com.vn/kinh-doanh/viec-trung-quoc-dang-rao-riet-gom-vang-bao-hieu-dieu-gi-20250509000522343.htm
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