The data showed that China’s gold holdings reached 72.80 million ounces (about 2,264 tons) at the end of April, up from 72.74 million ounces the previous month. The value of China’s gold reserves rose to $167.96 billion from $161.07 billion.
Demand arises from Central banks The global trend has been on gold for two years, which supports prices.
The World Gold Council expects global central banks to make slower purchases in 2024 compared to the 1,037.4 tonnes purchased last year, but will still be higher than by 2022.
Expected World Gold Council World central banks will reduce their purchases in 2024 compared to the 1,037.4 tons purchased last year.
it was People’s Bank of China The biggest official buyer of gold in 2023 will be a net purchase of 7.23 million ounces, or 224.9 metric tons, according to the World Gold Council, the most purchased in at least one year since 1977.
For his part, Mazen Salhab, Chief Market Strategist – BDSwiss MENA, said in an exclusive interview with Sky News Arabia, "China’s strong purchases of gold last year were clearly linked to a strategic position by the People’s Bank of China, which is trying to increase the percentage of gold in these reserves, as gold is not ‘ make up only 4.3 percent of China’s foreign currency reserves with gold. end of the first quarter of 2024, and this percentage reaches 69 percent in Germany26.2 percent in Russia and 33.9 percent at the European Central Bank".
He continued, saying: "In the process of China’s global economic expansion, China must abandon the influence of the US dollar and move away, with a greater margin, from American control.".
Salhab emphasized that America is still the first country in the world with caution gold With more than 8,130 tons, China is relatively far behind with only 2,264 tons, meaning that China has a long way to go to catch up with America and even Germany, for example, with 3,352 tons, and that it is close to France with 2,437 tons, and Russia with 2,330 tons, as well as Italy with 2,451 tons.
China consumes the world’s gold
The New York Times said in a recent report, reported by Sky News Arabia, that many Chinese have joined the wave of buying gold through monthly installments in so-called gold grains, which the small pieces are like pebbles.
Gold is generally considered a safe investment during periods Geopolitical unrest And its price has risen in response to Russia’s military operations there Ukraine And the war in Gaza strip. But the rise in the price of gold to more than $2,400 an ounce has been more and more persistent because of China’s hunger for the yellow metal.
Chinese buyers turned to gold as their confidence in traditional investments such as real estate or stocks waned. At the same time, China’s central bank is constantly adding to its gold reserves, while gradually getting rid of its holdings of US Treasuries. Chinese speculators who are betting on more room to rise are taking interest in gold.
according to "Ross Norman"CEO of MetalsDaily.com, a precious metals information platform based in London, FL "China is undoubtedly the main reason for the price of gold". He said: "The flow of gold to China has changed from a steady flow to a large, ie very dynamic, flow."
According to the Federation Chinese goldGold purchases in the country increased by 6 percent in the first quarter compared to the previous year. This increase followed a 9 percent increase last year.
i grew Investments in gold More attractive as the performance of traditional investments declines. So still Chinese real estate sector, which is the destination for the savings of most families, suffering from the crisis. Investor confidence was not restored Chinese stock market Completely. A series of large investment funds aimed at the wealthy has collapsed after a failed bet on real estate.
Lacking good alternatives, money flowed into China’s gold-trading funds, and many young people began collecting gold in the form of small nuggets.
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Growth in safe-haven demand, driven by geopolitical and economic uncertainty, as well as continued central bank purchases, contributed to a rise in gold prices in the March-April period, with spot gold prices hitting a record high of $2,431.29 per ounce on April 12. .
Ilya Spivak, Head of Global Macroeconomics at Tasty Live, said:I would say keep watching China because this is a trump card (referring to the increase in precious metal prices).
The data showed that China’s gold holdings reached 72.80 million ounces (about 2,264 tons) at the end of April, up from 72.74 million ounces the previous month. The value of China’s gold reserves rose to $167.96 billion from $161.07 billion.
Demand arises from Central banks The global trend has been on gold for two years, which supports prices.
The World Gold Council expects global central banks to make slower purchases in 2024 compared to the 1,037.4 tonnes purchased last year, but will still be higher than by 2022.
Expected World Gold Council World central banks will reduce their purchases in 2024 compared to the 1,037.4 tons purchased last year.
it was People’s Bank of China The biggest official buyer of gold in 2023 will be a net purchase of 7.23 million ounces, or 224.9 metric tons, according to the World Gold Council, the most purchased in at least one year since 1977.
For his part, Mazen Salhab, Chief Market Strategist – BDSwiss MENA, said in an exclusive interview with Sky News Arabia, “It was clear that the strong buying of gold in China last year was linked to a strategic position by People’s Bank than China, which was trying to raise the percentage of gold in these reserves, because gold represents… Only 4.3 percent of China’s foreign currency reserves by the end of ‘ first quarter of 2024, while this percentage reached 69 percent in Germany26.2 percent in Russia and 33.9 percent at the European Central Bank.
He continued, saying: “In the process of China’s global economic expansion, China must abandon the influence of the US dollar and move away from American control by a greater margin. America is losing market share in exchange for China’s slow but continued expansion. “
Salhab emphasized that America is still the first country in the world with caution gold With more than 8,130 tons, China is relatively far behind with only 2,264 tons, meaning that China has a long way to go to catch up with America and even Germany, for example, with 3,352 tons, and that it is close to France with 2,437 tons, and Russia with 2,330 tons, as well as Italy with 2,451 tons.
China consumes the world’s gold
The New York Times said in a recent report, reported by Sky News Arabia, that many Chinese have joined the wave of buying gold through monthly installments in so-called gold grains, which the small pieces are like pebbles.
Gold is generally considered a safe investment during periods Geopolitical unrest And its price has risen in response to Russia’s military operations there Ukraine And the war in Gaza strip. But the rise in the price of gold to more than $2,400 an ounce has been more and more persistent because of China’s hunger for the yellow metal.
Chinese buyers turned to gold as confidence in traditional investments such as real estate or stocks waned. At the same time, China’s central bank is constantly adding to its gold reserves, while gradually getting rid of its holdings of US Treasuries. Chinese speculators who are betting on more room to rise are taking interest in gold.
“China is undoubtedly the main driver of the gold price,” according to Ross Norman, CEO of MetalsDaily.com, a London-based precious metals information platform. He added: “The flow of gold to China has changed from stable to large mobile torrent.”
According to the Federation Chinese goldGold purchases in the country increased by 6 percent in the first quarter compared to the previous year. This increase followed a 9 percent increase last year.
i grew Investments in gold More attractive as the performance of traditional investments declines. So still Chinese real estate sector, which is the destination for the savings of most families, suffering from the crisis. Investor confidence was not restored Chinese stock market Completely. A series of large investment funds aimed at the wealthy has collapsed after a failed bet on real estate.
Lacking good alternatives, money flowed into China’s gold-trading funds, and many young people began collecting gold in the form of small nuggets.
2024-05-08 09:07:06
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