December 11, 2024<\/p>\n\n\n\n
By Anjali Kochhar<\/p>\n\n\n\n
China has resumed its gold-buying strategy after a six-month pause, showcasing a continued preference for traditional assets over cryptocurrency reserves. The People\u2019s Bank of China (PBOC) reported an increase in its gold holdings for November, marking a shift back to the precious metal amid volatile global markets and economic uncertainty. This move comes as part of China\u2019s cautious approach to cryptocurrencies.<\/p>\n\n\n\n
In November, China\u2019s gold reserves grew by 160,000 fine troy ounces, bringing the total to 72.96 million fine troy ounces from the previous 72.80 million. However, the monetary value of these reserves decreased from $199.06 billion in October to $193.43 billion, reflecting a dip in gold prices.<\/p>\n\n\n\n
This marks the first monthly decline in gold prices since June, attributed to a sell-off following the U.S. presidential elections and a cooling in demand after October\u2019s record-high prices. Spot gold prices fell by 5% in November but remain 28% higher for the year, with the current price at $2,640.30 per ounce. <\/p>\n\n\n\n
China\u2019s renewed interest in gold follows an 18-month purchasing campaign that ended in May and aligns with its role as the world\u2019s largest official consumer of gold in 2023. The resumption indicates that the PBOC is comfortable with current price levels and is prepared to continue building reserves despite volatility. Analysts believe this move could stimulate Chinese investor demand, which has remained subdued since the central bank paused its buying earlier this year. <\/p>\n\n\n\n
The decision also reflects a broader geopolitical and economic context. BRICS nations, including China, have been working on de-dollarisation strategies and exploring alternatives like gold and digital assets. While Bitcoin shares characteristics with gold, such as scarcity and mining processes, it has not yet gained traction as a reserve asset in China. Instead, the PBOC\u2019s focus remains on stabilising its economy and protecting wealth through traditional assets. <\/p>\n\n\n\n
Gold prices surged to an all-time high in October, driven by geopolitical tensions in the Middle East and Ukraine, coupled with increased demand for safe-haven assets during recent the U.S. election period. However, consumer demand for gold in China has softened due to elevated prices. Although bullion bars and coins have retained their value, retail sales of jewellery have dropped as investors focus on safeguarding wealth in a slowing economy. <\/p>\n\n\n\n
The performance of the gold market at the moment highlights both the potential and difficulties facing China’s monetary policy. With crucial resistance around $2,644.90, gold prices are currently hovering around $2,640.30 an ounce. A break above this level, according to analysts, would indicate fresh optimistic momentum, but a prolonged decline might make sentiment pessimistic. As part of its reserve policy, the PBOC’s purchases are anticipated to support China’s preference for physical assets over cryptocurrencies and give gold markets long-term stability.<\/p>\n\n\n\n
About the author<\/strong><\/strong><\/p>\n\n\n\n Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.<\/p>\n","protected":false},"excerpt":{"rendered":" December 11, 2024 By Anjali Kochhar China has resumed its gold-buying strategy after a six-month pause, showcasing a continued preference for traditional assets over cryptocurrency reserves. The People\u2019s Bank of China (PBOC) reported an increase in its gold holdings for November, marking a shift back to the precious metal amid volatile global markets and economic […]<\/p>\n","protected":false},"author":4,"featured_media":6855,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-6852","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uncategorized"},"yoast_head":"\n