China's gold-buying spree tops 100 tons during trade war

Andrew Cummings
October 8, 2019

China has stocked up considerably on gold since it resumed buying it in December, boosting its reserves with over 190,000 ounces (over 100 tons), according to data from the People's Bank of China, as cited by Xinhua. The price is back above the psychological $1,500's and sights are set for higher levels as we head over to trade talk territories.

The country's gold reserves hit their highest in more than six years in September, as the trade war and rate cuts boosted investors' interest in non-dollar currencies and alternative ways of storing wealth.

Official purchases will likely continue as protectionist policies and geopolitical concerns add to demand, according to Suki Cooper, a precious metals analyst at Standard Chartered Bank.


Neil Wilson, chief markets analyst at Markets.com, says that gold is now a "good buy", and China's increase "chimes with the flows we've seen in recent weeks that's pushed prices a lot higher".

Chinese Vice Premier Liu He and US Trade Representative Robert Lighthizer are set to resume top-level trade talks on Thursday, ahead of a scheduled increase in US tariffs on $250 billion worth of Chinese goods on October 15.

Spot gold declined 0.35 percent to $1,499.36 per ounce, after having risen half a percent last week on growth worries.


Jobs growth in the United States slowed in September and wage growth stalled, even as unemployment dropped to a 50-year low, a report on Friday showed.

Russia & China stockpiling gold because "they can read the writing on the wall" - Peter Schiff Global central banks, particularly those in Russia and China, have been boosting their gold reserves at a rapid place lately.

More specifically, per data released by the Central Bank of Russian Federation in September, Moscow augmented its stockpile of gold by more than $7.5 billion in one month. In the first six months, central banks worldwide picked up 374.1 tonnes, helping push total gold demand to a three-year high, the World Gold Council has said.


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