China Accumulates Gold at Record Prices Amid Dollar Concerns

China's central bank, the People's Bank of China (PBOC), has made its largest single-month gold reserve increase in nearly three years, adding 20.2 tonnes of gold to its reserves in August.

The PBOC added roughly 650,000 ounces of gold to its reserves in August, a move that extends China's continuous gold-buying run to 22 straight months.

This purchasing power is happening alongside a steady retreat from US government debt, with China's holdings of US Treasuries falling to their lowest level in 18 years.

The freezing of Russia's central bank assets by Western governments has shown reserve managers worldwide that dollar-denominated holdings can be frozen or weaponized in a geopolitical dispute, prompting concerns about the long-term purchasing power of the dollar.