GOLD - China's Gold-Buying Spree Continues: 16-Month Streak Challenges US Dollar Dominance | Benzinga
China’s central bank has been consistently accumulating gold for 16 months, in a move that could potentially undermine the dominance of the U.S. dollar.
What Happened: The People’s Bank of China added approximately 390,000 troy ounces of gold in February, bringing its total gold reserves to 72.58 million troy ounces, or roughly 2,257 tons, reported Bloomberg citing government data.
At 10:00 a.m. in New York on Thursday, the price of gold was at a record high of $2,161.90, marking a 5.25% increase over the past five days and an 18.77% increase over the past year.
Central banks’ gold purchases in 2023, totaling 1,037 tons, have contributed to the commodity’s rally. The recent surge in gold prices has also been fueled by traders’ expectations of Federal Reserve rate cuts.
China’s consistent gold accumulation, along with other central banks, reflects a global trend of diversifying reserves and reducing reliance on the U.S. dollar. This aligns with the ambitions of the BRICS economic bloc, which includes Brazil, Russia, India, China, and South Africa, to challenge the dollar’s global dominance.
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