We have seen strong levels of Central Bank buying in recent months as nations look to shore up their reserves with gold bullion, but one economy appears to be leading the way. New figures reveal that China has increased its gold holdings for a seventh successive month, further underlying the safe-haven appeal of gold as many countries begin to look away from the U.S. dollar amid increasingly fraught global political relations.
Official details released by the People’s Bank of China earlier this week confirm that the world’s second largest economy now holds 2,092 tons of gold in its vaults. Between November and May, it acquired 144 tons. This is part of a wider trend amongst central banks, with a quarter indicating that they plan to increase their gold holdings in 2023. With many countries, especially emerging economies, shifting their focus away from the greenback, even greater levels of support for gold should begin to emerge.
The London Bullion Market Association said this week that it expects to see high levels of demand from central banks continue unabated.
