The People’s Bank of China (PBOC) reported an increase in the country’s gold reserves of 18 tons in March, continuing its buying spree. China has consistently increased its gold reserves since November, buying more than 100 tons in the past five months. The Asian nation now holds 2,068 tons.
China bought 18 tons of gold in March, PBOC report shows
China further increased the size of its gold reserves in March. The size of China’s national gold reserves increased by 18 tons in March to a total of 2,068 tons, according to areportfrom the People’s Bank of China. The purchases represent a continuation of a five-month buying spree that began last November.
In 2022, the agency set a record figure for central bank gold purchases, with central banks acquiring the highest amount of gold since 1974. This renewed gold rush is related to the need to take refuge in safe assets during times of inflation.
According to economists, China may be preparing to issue a gold-backed currency as part of its BRICS strategy to reduce its dependence on the U.S. dollar.In October, Craig Singleton, a senior fellow at the Foundation for Defense of Democracies, reported that the nation is buying gold He explained that this is a possibility because of the large amount of
More recently, Alexander Babakov, deputy chairman of the State Duma, said that a currency backed by gold and other commodities could be announced at the BRICS summit in August.
Gold Price Forecasts
Gold Price Forecasts Analysts are predicting higher gold prices in the future due to continued central bank demand for gold and the macroeconomic headwinds facing several large global economies.
Gold market analyst Jan Nieuwenhuijs says gold prices may hit the $8,000 mark in the next decade as central banks begin to cut foreign reserves and run on gold. And economist Peter Schiff, known as the gold bug, predicts a bull market in gold, saying it still has legs to keep growing, which will bring Wall Street investors to their knees.
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