China increased its gold reserves in April for the sixth consecutive month, bringing the total to $243.6 billion amid high gold prices and lingering trade tensions.
Domestic demand is surging with record trading volumes and new import quotas. The People's Bank of China is gradually moving away from dollar-denominated assets, mirroring a global trend where central banks have increased their gold purchases fivefold since 2022.
China could be aiming to increase its gold holdings to 20%, from the current 8%, which could take about three years at the current pace.
As countries hold fewer and fewer US Treasuries, Stablecoins could become important future buyers of the bonds.
