In addition to dollar-denting on expectations that the brakes could soon be applied to U.S. interest rates, gold was also supported by increasing market nervousness over U.S. President Donald Trump’s unbending demand for a wall to be built on the border with Mexico.
After a hiatus of more than two years, China is adding to its gold reserves again.
The People’s Bank of China increased holdings to 59.56 million ounces by the end of December, or about 1,853 metric tons, from 59.24 million ounces previously, according to data on the central bank’s website. They had been unchanged since about 130,000 ounces were added in October 2016.
The world’s biggest producer and consumer boosted holdings of bullion in a month marked by mounting concerns that China’s trade dispute with the U.S.
“Russia’s central bank dumped $101 billion in U.S. holdings from its huge reserves, shifting into euros and yuan last spring amid a new round of U.S. sanctions.”