©Reuters.
Investing.com – Chinese attitudes towards the yellow metal have seen a sudden change for the first time since the Corona pandemic which started in late 2019.
For the first time in more than three years, the Chinese central bank has been tending to increase reserves, after announcing a sudden increase last November that exceeded 1.03 million ounces.
Global was up more than 8% in November after falling for seven consecutive months on expectations that the Federal Reserve could become less aggressive.
Price support
And China’s central bank announced on Wednesday to increase its gold reserves for the first time in more than three years, which could provide support to the yellow metal’s price. The People’s Bank of China increased its gold reserves to 63.67 million ounces at the end of November, up from 62.64 million ounces the previous month, according to data on its website on Wednesday.
In terms of tonnage, last month’s flow was around 32 tonnes, compared to the cumulative 106 tonnes reported in the ten months to September 2019.
Weakness tempts China
Data from China’s central bank on Wednesday showed that China’s foreign exchange reserves rose more-than-expected in November as the dollar weakened against other major currencies.
The country’s foreign exchange reserves – the largest in the world – rose by $65.1 billion to $3.117 trillion last month, up from $3.10 trillion according to a survey of analysts and $3.052 trillion in October.
The State Administration of Foreign Exchange said in a statement that the increase in reserves in November came with dollar weakness and rising global financial asset prices.
what to say ?
The yuan was up about 3% against the dollar in November, while the dollar fell 5.1% against a basket of other major currencies last month.
After a sharp decline earlier in the year, it recently regained ground against the US dollar, which came under pressure after Federal Reserve Chairman Jerome Powell said the pace of US interest rate hikes could be curtailed “already in December”.
The Covid policy in China… is it over?
China on Wednesday announced the most sweeping changes to its strict anti-COVID regime since the pandemic began three years ago, easing rules that have limited the spread of the virus.
The value of China’s gold reserves rose to $111.65 billion at the end of November, from $102.67 billion at the end of October.
The data also showed that China held 63.67 million ounces of gold at the end of November, up from 62.64 million ounces at the end of October, the first change since September 2019.
Central banks hoarding of gold
And the World Gold Council announced days ago that central banks continue to hoard gold according to the latest available data 1 In October – the data was delayed by two months – central banks added another 31 net tons of gold to international reserves.
According to data from the World Gold Council, this preliminary figure helps bring global official gold reserves to their highest level since November 1974 (36,782 tons).
