China added 1.03 million ounces (32 tons) of gold to its reserves in November 2022, according to an official statement by China’s State Administration of Foreign Exchange (SAFE) on Dec. 7. Meanwhile, its holdings of U.S. treasury bonds fell to a 12-year low.
Analysts speculate that while China augments its gold reserves to hedge against risk, reducing U.S. dollar assets aims to mitigate possible sanctions for its support of Russia’s Ukraine invasion.
