Amid growing economic and geopolitical instability, China is stepping up the de-dollarization of its reserves, with the central bank continuing to buy gold for the eighth consecutive month.
The People’s Bank of China added 23 tons in June and now holds 2,330 tons of gold in its reserves, according to official figures.
Other central banks are also ditching the greenback as a global reserve asset and increasing their yellow metal stockpiles. Demand for gold skyrocketed in 2022 and the trend has continued into this year with first-quarter purchases up 176% annually.
According to a World Gold Council report from May, 62% of central banks estimate that gold will make up a greater share of reserves in the next five years. While dollar reserves are projected to shrink to 40-50%.