The People's Bank of China has increased its gold reserves for the 23rd consecutive month as part of its strategy to diversify foreign assets.
According to Yonhap News Agency, the central bank announced that as of the end of September, China's gold reserves totaled 77.47 million ounces, an increase of 740,000 ounces from the end of August. Despite significant fluctuations in gold prices this year, China has continued its purchasing streak.
China is steadily increasing its gold holdings to reduce reliance on U.S. dollar assets and diversify its asset portfolio. Data released by the State Administration of Foreign Exchange indicated that as of the end of September, China's foreign exchange reserves stood at $3.403 trillion (approximately 4,556 trillion won), a decrease of 1.11% ($38.1 billion) from the previous month.
According to financial information provider Wind, gold futures prices on the New York Mercantile Exchange fell by 6.52% in September. As a result of the decline in gold prices, the value of China's gold holdings decreased from $350.08 billion (approximately 469 trillion won) at the end of August to $323.52 billion (approximately 433 trillion won) at the end of last month.
HSBC has revised its gold price forecast downward, citing expectations of further interest rate hikes by the U.S. Federal Reserve and rising oil prices. The bank lowered its average gold price forecast for this year from $4,560 per ounce to $4,490.
The State Administration of Foreign Exchange explained, "Last month, the global macroeconomic environment and monetary policies in major economies led to an increase in the dollar index, while prices of major global financial assets generally declined. The combined effects of exchange rate fluctuations and asset price changes contributed to the decrease in foreign exchange reserves." It added that the overall stability of the Chinese economy and the transition of growth drivers have helped maintain foreign exchange reserves at a fundamentally stable level.
* This article has been translated by AI.
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