Story of the day
China joins the list of countries that are stocking up on gold, with the PBOC announcing yet another increase in its gold reserves in January. This trend of increasing central bank buying has been going on since late last year, peaking in 3Q22 at a record high of 400 tonnes. The motivation is multi-fold but one of the key reasons is to de-risk against the dollar and dollar assets as gold is a more 'neutral' store of value that is not cuffed to any individual economy, and gold is also resilient in geopolitical and financial crises.
