- China’s central bank has plowed funds into gold over the last 10 months, adding over 100 tons of the precious metal to its reserves.
- China’s gold reserves rose by 5.9 tons in September, bringing the total added since December 2018 to over 100 tons, Bloomberg reported, citing the People’s Bank of China.
- Traders drove the price of gold to its highest level since 2013 last month as they sought out havens in the face of geopolitical uncertainty.
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China has continued to plow funds into gold as a buffer against Trump’s trade war, adding 5.9 tons of the metal to its reserves in September.
The central bank has added over 100 tons of gold to its reserves since December 2018, Bloomberg reported, citing the People’s Bank of China.
Gold is often seen as a haven asset, making it a popular choice for investors during times of uncertainty. The metal’s price has climbed nearly 19% since the start of the year.
Neil Wilson, chief markets analyst at Markets.com, says that gold is currently a “good buy,” and China’s increase “chimes with the flows we’ve seen in recent weeks that’s pushed prices a lot higher.”
“I think they’re also seeking to have more stability for the yuan,” Wilson said. “It’s a reflection of the trade war and uncertainty this has created among the Chinese authorities – they need to hedge their risks.”
Last month, the price of gold skyrocketed to its highest level in six years, highlighting the uncertainty investors have been feeling about the global economy.
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