China’s Gold Reserves Increased to USD111.65 Bil

For the first time in more than three years, China reported an increase in gold reserves, potentially providing a pillar of support for prices.

The central bank of China, People’s Bank of China (PBOC) has increased holdings to 63.67 million troy ounces as of end-November, from 62.64 million in October.

In terms of dollar-value, the total value of China’s gold reserves rose to US$111.65 billion at the end of November from US$102.67 billion at end-October.

This came as China saw a rise in foreign currency reserves last month as the greenback weakened against other major currencies.

According to the World Gold Council said in its latest demand report, central banks remained the largest purchasers which continued to accumulate gold, with purchases estimated at a record of nearly 400 tons last quarter.

Meanwhile some analysts interpreted China’s purchases as part of a plan to diversify its reserves away from the US dollar.

China’s foreign exchange reserves, the world’s largest, rose US$65.1 billion to US$3.117 trillion last month.

The State Administration of Foreign Exchange said the increase came amid the weakening US dollar and rising prices of global financial assets.

In November the Chinese Renminbi rose about 3 percent against the US dollar.

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