The People’s Bank of China continues to buy gold for the fifth consecutive month
Global markets expert Abdel-Azim Al-Amawi said that the current rises in gold prices came directly after the banking crisis at the beginning of last March.
Al-Amawi added in an interview with “Al-Arabiya” that about 24 hours before the collapse of the Silicon Valley Bank, the price of an ounce of gold was 1812 dollars, and during the next 6 days from the beginning of the crisis, it rose to 1988 dollars, which means that this was the reason for this increase, but there are also basic factors. Others for these gains, including the strong purchases of central banks and the return of high investment demand, which pushed the “ounce” currently above $ 2000.
He said that central bank purchases of gold amounted to 52 tons last February, which is the eleventh month in a row that witnesses the continuation of their purchases of gold.
Al-Amawi explained that the People’s Bank of China continued to buy gold for the fifth month in a row, since it began last November to announce its purchases of gold.
It is likely that the People’s Bank of China purchases of gold aims to strengthen the yuan and distance from the dollar and to hedge against economic crises.
He stated that the Turkish Central Bank continued to buy gold for the fifteenth month in a row, until it reached 568 tons of gold, representing about 33% of international reserves.