China continues its strategic shift in reserves toward gold. The People’s Bank of China increased its gold reserves again in July, with the pace of purchases accelerating significantly. It marked the largest monthly increase since October 2023.
At the same time, China has been steadily reducing its dependence on U.S. Treasury securities and the U.S. dollar. This trend reflects continued reserve diversification, the growing importance of physical gold, and an effort to reduce reliance on the dollar-based financial system.
For gold, this is another important long-term signal: one of the world’s largest central banks continues to view gold as a strategic reserve asset.
Leave a Reply