China adds nearly 100 tonnes of gold to its reserves

Russia’s huge gold stash is now worth more than $100 billion

Russia’s huge gold stash is now worth more than $100 billion

The significant increase in gold holdings by the POBC comes amid falling global interest rates and China's ongoing trade war with the United States, both of which may have prompted Beijing to diversify its reserve holdings and hedge against potential future USA penalties.

The bullion reserves rose to 62.45 million troy ounces (2,141 tons) as of the end of last month, according to the latest data released by the People's Bank of China.

As economic tensions escalate and the Trump administration continues with its war on trade, China has started stockpiling safe-haven assets. However, one of the major reasons behind the rise in gold prices is heavy buying from some of the bigger central banks in the world and the People's Bank of China has proved to be one of the most aggressive buyers so far.

As central banks cut interest rates in reaction to economic slowdowns, the price of gold inevitably increases.

According to a Bloomberg report, China has been stored in the meantime ingot 100 tons of gold, which contributes to the in December, begun in accumulation.

China and Russian Federation have been stockpiling gold, helping to propel the precious metal to its highest level in more than six years.

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"In addition, Gold offers, in view of the increasing political and economic uncertainty, an ideal hedge, and will be sought after, therefore, the Central banks in the world".

Moreover, considering the fact that the US-China trade war is showing no signs of being resolved, many analysts believe that heavy buying is going to continue. Goldman Sachs Group Inc. and BNP Paribas SA are among banks that say they expect the metal to challenge $1,600 an ounce in coming months.

In the beginning of August, the Chinese currency slipped past the key psychological level of 7 per USA dollar for the first time in over a decade before it posted its sharpest monthly drop in 25 years.

Recent protests in Hong Kong have also strengthened the appeal of Bitcoin, as protesters tried to overrun the Chinese banks. All indicators point to a further accumulation of BTC by the world's largest population, since the Central Bank to accumulate Gold.

Will Chinese demand for bitcoin push prices higher?

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