China has been collecting gold for 10 consecutive months, what is Beijing calculating?

(Dan Tri) - The Central Bank of China continues to collect gold for the 10th consecutive month. In the context of global economic and geopolitical fluctuations, what does this move indicate that Beijing is calculating?

China’s central bank continued to add gold to its reserves in August, marking the 10th consecutive month of purchases. The move reflects Beijing’s efforts to diversify its foreign exchange reserves and reduce its dependence on the US dollar, according to Bloomberg.

China's gold reserves reached 74.02 million ounces at the end of August, up from 73.96 million ounces at the end of July. The value of the gold was equivalent to 253.84 billion USD, up from 243.99 billion USD in the previous month, according to PBoC data on September 7.

Since the buying spree began last November, China has accumulated a total of 1.22 million ounces of gold.

“Although China’s gold purchases have slowed since the start of the year, the PBoC has continued to add to its reserves even as prices have climbed,” Adrian Ash, research director at online trading platform BullionVault, said in a report.

“Beijing’s continued accumulation is a clear signal of its confidence in gold as a long-term reserve asset. At the same time, this move also reinforces confidence in gold among Chinese investors and households,” he stressed.

Gold bars in a vault in Germany (Photo: Reuters).

Since the beginning of the year, global gold prices have continuously reached new peaks with an increase of more than 30%, currently surpassing the 3,500 USD/ounce mark. The price increase wave is driven by expectations that the US Federal Reserve (Fed) will cut interest rates, along with President Donald Trump's statements regarding the independence of the Fed.

Investment bank Goldman Sachs predicts that if the Fed's independence is eroded, gold prices could approach $5,000 an ounce. Gold is considered a safe haven for investors, so the precious metal often increases in price when interest rates are low and uncertainty increases.

The World Gold Council (WGC) said in its latest report that the pace of gold purchases by global central banks has slowed due to high prices, but geopolitical tensions remain a factor maintaining demand.

Commerzbank forecasts that the threshold of $3,600/ounce is completely achievable by the end of this year. UBS also raised its gold price forecast to around $3,600-3,700/ounce.

Source: https://dantri.com.vn/kinh-doanh/trung-quoc-gom-vang-10-thang-lien-tiep-bac-kinh-tinh-toan-gi-20250908150055621.htm