China’s Central Bank Keeps Buying Gold—and Dumping US Debt

‘The reason gold is going up is because of what’s happening in China,’ says Michael Howell, founder of CrossBorder Capital.

Gold bars are stacked in a vault at the United States Mint, in West Point, N.Y., in this file photo. Mike Groll/AP Photo

China’s ferocious appetite for gold is influencing the global metals market, and that demand is what will keep driving up metal prices, says Michael Howell, founder of CrossBorder Capital.

The People’s Bank of China’s gold holdings totaled 74.19 million fine troy ounces by the end of January, up from 74.15 million in the previous month, according to recent central bank data.