CHINA’S central bank added gold to its reserves in January for a third month, official data by the People’s Bank of China (PBOC) showed on Friday (Feb 7).
China’s gold reserves were 73.45 million fine troy ounces at the end of January, versus 73.29 million troy ounces a month earlier.
The value of China’s gold reserves rose to US$206.53 billion at the end of last month from US$191.34 billion at the end of December.
Gold has reached an all-time high, breaking multiple records so far this year, largely due to the uncertainty surrounding US President Donald Trump’s tariff policies, which have amplified concerns about global economic growth and inflationary pressures.
“I think it indicates that they feel that the trade war has got legs to run and that they’re concerned about how that might play out,” an independent metals analyst Ross Norman based in London said.
The US imposed an additional 10 per cent tariff on Chinese imports that went into effect on Tuesday, and was met with a package of retaliatory measures from China.
In May 2024, PBOC put a halt to its 18-month-long gold purchasing spree, a move that had significantly impacted Chinese investor demand. However, in November, the central bank resumed its gold buying.
Global central banks, a major source of gold demand, bought more than 1,000 tonnes of the metal for the third year in a row in 2024 and are expected to remain active buyers in the 2025 due to geopolitical and macroeconomic uncertainty, according to the World Gold Council. REUTERS
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