China Expands Gold Reserves at Central Bank For Fifth Month

China’s central bank has reportedly increased its gold reserves for the fifth consecutive month, signaling the country’s continued interest in diversifying its foreign exchange reserves. The People’s Bank of China increased its gold reserves by 480,000 ounces in September, bringing the country’s total gold holdings to 62.64 million ounces.

The continued expansion of China’s gold reserves comes amid a backdrop of trade tensions with the United States and other economic uncertainties. Gold is traditionally seen as a safe haven asset in times of market volatility and geopolitical turmoil.

China has been steadily increasing its gold reserves since December 2018, when it resumed buying gold after a two-year hiatus. The country’s current gold holdings rank it fifth in the world behind the United States, Germany, Italy, and France.

While the central bank did not provide a reason for the increase in its gold reserves, some analysts speculate that it could be part of China’s broader efforts to reduce its reliance on the US dollar and promote the internationalization of the Chinese yuan.

Regardless of the underlying reasons, the expansion of China’s gold reserves is likely to continue to influence global gold prices and have broader implications for the global economy.