The People’s Bank of China announced that the central bank bought an additional 32 tonnes of reserves on Wednesday, December 7th. worth $1.8 billion for the first time since September In 2019, the People’s Bank of China revealed an increase in gold in the reserve system.
This latest gold purchase As a result, China’s central bank’s gold reserves rose to 1,980 tons, worth $112 billion.
Reuters reports that China has the world’s sixth largest gold reserves after countries including Russia, Germany and the United States.
The World Gold Council (WGC) revealed that central banks around the world bought a total of 399 tonnes of gold in the third quarter of 2022, the highest quarterly purchase ever recorded.
The WGC central bank did not say which country bought the maximum amount of gold in its reserves. But market participants predicted that those countries could be China and Russia.
Analysts predict that gold purchases by the People’s Bank of China and central banks around the world will be a factor in gold prices in the world market. After a sharp drop in prices over the last few months. This is due to concerns about aggressive rate hikes by the Federal Reserve (Fed) In addition, a surge in US bond yields has led to an increase in the opportunity cost of gold holdings. Because gold is an interest-free asset in the form of interest.
By InfoQuest News Agency (09 Dec ’22)
Tags: China , gold , Central Bank of China
