China increased its gold reserves for the third straight month in February according to the People’s Bank of China.
China’s gold reserves rose to $79.498 billion in February from $79.319 at the end of January. The central bank continues to stockpile gold which has been a pretty steady theme throughout central banks in the past decade.
The People’s Bank of China did not provide to much detail as to why the nation continues to add to their reserves, however many are speculating that it is due to global economic headwinds with the added uncertainty surrounding the U.S dollar.
It is important to note that foreign investors sold a record $77.4 billion of US Treasuries in December. It seems more and more countries are beginning to sell their US treasuries and returning to gold for wealth preservation and dominance as the US continues to become more and more in debt.