According to the data released by the People’s Bank of China (PBOC) on March 7, the country’s gold reserves at the end of February stood at 72.58 million ounces, an increase of 390,000 ounces compared to the end of January. Since November 2022, PBOC has been increasing its reserves of this precious metal, and this is the 16th consecutive month the bank has increased its gold reserves.
A gold bar. Photo: Tehran Times.
With an increase of 12 tons in February, China’s current gold reserves stand at 2,257 tons.
According to experts, this 16-month streak of gold purchases by the country is equivalent to the one in 2015, but with a higher total volume. Since November 2022, PBOC has added 297 tons of gold to its reserves. This move comes against the backdrop of recent record highs in the global gold price. Currently, an ounce is priced at $2,157, up over $300 from October 2023.
Macro researcher Zhou Maohua of China Everbright Bank said in a recent interview with domestic media that PBOC’s increase in gold reserves follows a global trend aimed at optimizing and diversifying the asset structure of reserves, enhancing stability.
Based on the distribution of gold reserves by central banks globally, the total proportion of gold in the official reserve assets of emerging economies is relatively low, leaving room for future increases in holdings, but the pace of increase is uncertain.
As gold currently accounts for over 4% of PBOC’s total reserves, analysts believe that China may continue to buy more of this precious metal.
