China's Gold Buying Frenzy Pushes Prices Above $2,400, Diversifies from U.S. Treasuries

May 6, 2024, 09:50 AM

China's recent aggressive gold purchasing strategy has driven gold prices to record highs, surpassing $2,400 per ounce. This strategic shift comes as China opts to invest in gold rather than buying U.S. Treasury securities with its surpluses. The country is using foreign currencies for these purchases, reducing its exposure to the U.S. dollar and other currencies. This move is part of China's broader economic strategy to rotate its economy and hedge against potential currency devaluation and inflation.