- China continues to dominate the gold market, according to the latest data from the nation's central bank.
Over the last several months, analysts have noted that China's consistent demand for gold is part of a tactic to bring more international credibility to the yuan. At the same time, China's buying is part of a more significant de-dollarization theme globally. "I think you have to benchmark their eventual holdings against the U.S., which stands at 8,133.46 tonnes," said Aldis,"I think China would need to perhaps double their holdings from its current level to going to the second largest holder to have much more alignment as a reserve currency."
"U.S. govt. spending is out of control & there's little doubt that's a primary catalyst for foreign central bank gold buys," he said.