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China announces fifth straight month of growth in gold reserves

Submitted by cpowell on 01:57PM ET Wednesday, May 8, 2019. Section: Daily Dispatches
China's Central Bank Stocks up on Gold as It Seeks to Diversify

By Henry Sanderson
Financial Times, London
Wednesday, May 8, 2019

China's central bank added gold to its reserves for the fifth month in a
row in April, the latest emerging market central bank to stock up on
the yellow metal.

The People's Bank of China said its gold reserves rose to
61.1 million ounces last month, an increase of 480,000 ounces from
March, and bringing its total gold holdings to about $78.3 billion. ...

... For the remainder of the report:

https://www.ft.com/content/860a418c-7172-11e9-bf5c-6eeb837566c5

“Gold,” says Julius Baer’s Mark Matthews in an ET Markets report, “should be about 15% higher over the next year and the basic reason is that eventually the US dollar is going to stop going up. At the same time with all these trade wars and confrontations between major powers of the world, Russia, China, the United States, there is a case for diversification away from dollars and the central banks are doing that. One of the things they are diversifying into is gold. I would say we like gold in the commodity space.” XinhuaNet, China’s official press outlet, reports overnight the Peoples Bank of China added nearly 15 tonnes to its gold reserves in April – the fifth consecutive month of additions to its holdings.
Quote of the Day
“Like liberty, gold never stays where it is undervalued.” – John S. Morrill