The People’s Bank of China (PBOC) noted an additional 18 tons of gold to the nation’s reserves in March, continuing its acquisition spree. Since 2018, China has been steadily increasing its gold reserves and the last five months have seen 100 tons added. The country now has 2,068 tons in its vaults.
China Adds 18 Tons of Gold to Reserves in March, PBOC Reports
China’s gold stores were increased further in March. According to the People’s Bank of China’s report, the national gold reserve was augmented by 18 tons in March, bringing the total to 2,068 tons. The purchase marks the continuation of a five month buying period that began in November of last year.
Since 2019, there have been no reports of gold purchases. The nation has acquired 102 tons of precious metal in the past five months. The World Gold Council has stated that central banks will keep on hoarding gold during the current fiscal year.
2022 was a record year for central bank gold purchases. Since 1974, central banks have gathered larger amounts of gold than ever before. The resurgence of gold is attributed to the effort to safeguard assets from inflation.
Economists have suggested that China, along with the other BRICS countries, may be preparing to launch a gold-backed currency as part of its plan to reduce reliance on the US dollar. Senior Fellow at the Foundation for Defense of Democracies Craig Singleton reported in October that the nation’s large gold purchases could be the motivation behind this.
More recently, State Duma Deputy Chairman Alexander Babakov conjectured that such a currency could be presented at the BRICS summit in August, potentially backed by gold or other commodities.
Gold Price Predictions
Analysts have forecast a rise in gold prices due to the ongoing demand from central banks and the macroeconomic issues faced by several of the world’s largest economies.
Gold analyst Jan Nieuwenhuijs has stated that gold prices may reach $8,000 in the next decade as central banks begin to lose foreign currency reserves and turn to gold. Gold bug and economist Peter Schiff has also predicted a bullish gold market, saying that gold still has potential and will continue to rise, leading to capitulations from Wall Street investors.
What do you think about China’s gold acquisition spree? Make your voice heard in the comments section below.
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