China picked up more gold last month, raising it’s holdings to 62.64 million ounces in September from 62.45 million in August.
This is the highest it has ever purchased in six years as the super power grapples with slow economic growth, the trade war and gold demands from investors.
Given strained relations with the U.S. China needs a hedge against its large holdings of the dollar and gold serves as the perfect answer.
Along with China, Russia has also been adding substantial quantities of gold.
In the first six months of 2019 central banks worldwide picked up 374.1 tons, helping push total gold demand to a three-year high, the World Gold Council said.
China and Russia are expected to buy more gold as it tries to retain its super power status.