According to data released Sunday by China’s State Administration of Foreign Exchange, the country has increased its gold reserves for at least four consecutive months. In April, Chinese gold reserves amounted to 66.76 million ounces, equivalent to about 2,076 tons. By comparison, in January reserves were 65.12 million ounces, or around 2,025.2 tons, while in February and March they grew to 2,050.1 and 2,068.15 tons, respectively.
According to Bloomberg, these gold purchases would be linked to the slowdown in the US economy and the risks of an escalation of the geopolitical confrontation between Beijing and Washington. Investors often turn to gold as a safe haven in times of economic and political uncertainty, and trade and political tensions between China and the United States have increased in recent years.
China is one of the world’s largest producers of gold, but it is also one of the biggest buyers of the precious metal. The country has increased its gold reserves in an attempt to diversify its foreign exchange reserves and reduce its dependence on the US dollar as a reserve currency. In addition, gold reserves can also help support the value of China’s currency in international markets.