Why China is importing a record amount of gold — and what it means for prices
... The PBOC’s main motive is political, according to Carsten Menke, an analyst at Julius Baer Group, pointing to “the weaponization of the U.S. dollar and the related desire to be less dependent on U.S. Treasuries as a reserve asset.” ... Adding to the momentum of the unprecedented buying is Beijing’s plan to build a deeper domestic gold market, prompting it to replenish inventories, said Menke. He estimated that the central bank bought around 190 tonnes this year by end-August, including 110 tonnes that were unreported. ... The world’s fifth-largest gold holder owned 2,387 tonnes as of August, according to the World Gold Council, less than a third of the that held by the U.S. ...
