The People’s Bank of China increased gold reserves in August, continuing to do so for the tenth month in a row. Such a strategy aims to diversify assets in favor of gold and reduce dependence on the US dollar, reports Bloomberg.
Official data show that gold reserves increased by 0.06 million troy ounces and reached 74.02 million ounces. China has added 1.22 million ounces to reserves since the beginning of the procurement cycle last November.
Recently, gold prices set a record, overcoming a long period of “sidewalk”. This happened against the background of expectations of lower interest rates in the US and criticism of the Federal Reserve System by the White House.
The price of gold has increased by more than 30% since the beginning of the year and exceeded the mark of 3,500 dollars per ounce. According to forecasts of Goldman Sachs, any blow to the independence of the Fed could push the price to the level of $5,000.
However, global gold purchases by central banks have slowed due to high prices. At the same time, according to the World Gold Council, geopolitical risks will continue to support the interest of official institutions in this asset.
