China increases gold reserves for the first time since 2019

The People's Bank of China (PoBC) said it had increased its gold reserves by 32 tons, worth about $1.8 billion, for the first time since September 2019.

As a result, at the end of November, China's official gold holdings amounted to 1,980 tons, worth about $112 billion.

China has the sixth-largest national gold reserve after such countries as Russia, Germany and the United States.

The World Gold Council (WGC) reported that central banks across the globe bought a record 399 tons of gold in Q3 2022. This is the largest quarterly figure in history.

The WGC also added that much of the precious metal was obtained by central banks that did not publicly announce purchases. This fueled speculation that countries such as China and Russia may be stockpiling.

Stronger demand from central banks should help support both gold demand and prices.