China Gold Reserves Rise To 60.26 Million Ounces Worth Just $79.5 Billion
GoldCore.com
7, March
China increased its gold reserves for a third straight month in February, data from the People’s Bank of China (PBOC) showed this morning.
The value of China’s gold reserves rose slightly to $79.498 billion in February from $79.319 billion at the end of January, as the central bank increased the total amount of gold reserves to 60.260 million fine troy ounces from 59.940 million troy ounces.
The People’s Bank of China (PBOC) did not explain why it bought more gold. It is almost ertaintly in large part due to concerns about the Chinese, U.S. and global economic outlook and the outlook for the dollar in the coming months and years.
China’s foreign exchange (fx) reserves rose to their highest in six months in February. There are growing concerns over U.S.-China trade talks and the potential for trade wars and the impact of this on their respective economies.
Chinese foreign exchange (fx) reserves, the world’s largest, rose by $2.26 billion in February to $3.090 trillion, central bank data showed on Thursday, marking the highest level since August 2018. The U.S. trade deficit hit its highest in a decade in 2018, in a resounding failure for President Donald Trump’s global trade offensive, U.S. government data showed yesterday.
It is important to realise that the PBoC still have a very meager 2.4% of its foreign exchange reserves in gold, so their gold diversification is likely in it’s infancy. John Reade of the World Gold Council notes on Twitter that the last time the PBoC reported regular monthly increases in gold holdings, it continued for 24 months.
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