February 7, 2023

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What is behind the rise in gold – the country that secretly bought 100 tons in a few days | News about the economy

in a volley the shopping of gold Recently immersed n its central bank Chinawhich is trying to build a strong “stock”, trying to reduce dependence on U.S. dollar.

Cumulative imports from People’s Bank Beijing (PBOC) only launched last November when it was purchased 32 tons of gold – In addition to the usual monthly purchases. It was followed by 30 tons of “extra” gold. Dec, while only The first days of 2023 100 tons were obtained.

The result of these emergency supplies China’s total reserves to reach them 2,010 tonsAn increase of 3.2% compared to October 2022, when inventories did not exceed 1,950 tons.

In fact, as the numbers show, the increase in the last two months has led to an increase in imports for the whole of 2022 high at all. This, of course, has contributed to the steady rise in the price of the precious metal in recent months, which is hoped for $1,900 an ounce (the highest level in 11 months).

Why is all this happening?

Understandably, these developments triggered a number of scenarios for China’s intentions. Experts say that additional gold purchases are closely related to Beijing’s intention to limit it Dependence on the US dollarWhile relations with the United States are constantly deteriorating due to the technological “war”.

Moreover, due to the fact that Central bank reserves It mainly consists of dollars, which can be focused on at any time Penalties For the West (as happened in Russia), the Chinese government wants to limit the impact of such an adverse development.

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So, Laiki Bank is trying to do just that Stock diversification From decreasing the dollar and increasing gold. The broader situation in the markets is also contributing to this, as the dollar continues to rise Cheaperwhich helps China to buy the precious metal at lower prices.

Covid role

At the same time, analysts point out, China fears implementation risks Travel restrictions from foreign countries because of it for a new outbreak of the Corona virus and the sudden lifting of the “zero tolerance” policy on covid.

Therefore, if the West imposes restrictive measures or if China has to take it back closures, many sectors of the economy (tourism, industry, manufacturing) will suffer significant damage. And high reserves of gold, of course, could make this damage … more moderate.

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