The People's Bank of China has increased its holdings of gold reserves for 12 consecutive months

In October of this year, the People's Bank of China increased its gold reserves by 30000 ounces to 74.09 million ounces, marking the 12th consecutive month of net increase in holdings. During the same period, the gold price remained at a record high - spot gold prices hit a historical high of $4294 per ounce at one point, but since then have rebounded to around $4000 per ounce at the end of the month, with a cumulative increase of 4.9% for the entire month, marking the fifth consecutive month of gains. Wen Bin, Chief Economist of Minsheng Bank, talked about the reasons why the People's Bank of China continues to increase its holdings of gold reserves. He said that currently, gold is detached from the single sovereign currency system. In the long-term trend of severe fluctuations in the US dollar and declining US dollar asset credit, increasing gold reserves can help optimize China's foreign exchange reserve structure and diversify the risk of high US dollar asset ratios. Wen Bin also stated that the current global geopolitical risks are high, regional conflicts are frequent, and the safe haven and anti inflation properties of gold determine that it still has significant investment demand and appreciation potential, which will help maintain and increase China's foreign exchange reserves.