China’s gold rush reshapes global markets amid dollar concerns
Gold prices dipped slightly today, but China's gold buying spree continues, with experts suggesting a strategic shift away from the US dollar. As of 14:36 MSK on November 14, gold stood at $4,155 per ounce, down 0.4%.
Jeff Currie, a commodities research head at Carlyle, believes China's gold purchases are a means to reduce its dependence on the dollar. This aligns with China's broader economic diversification strategy.
Central banks worldwide have been bullish on gold. In September alone, they bought 39 tons, the highest monthly total this year, a 79% increase from August. This trend is expected to continue, with analysts at Société Générale estimating China's total gold purchases could reach 250 tons by 2025, over a third of global central bank demand.
Official data from the People’s Bank of China (PBOC) shows it acquired gold in recent months, with 2.2 metric tons in June and 1.9 tons each in July and August.
Gold prices may fluctuate, but China's gold buying, driven by strategic considerations, is likely to continue. This could have significant implications for the global economy and the role of the US dollar.
