Gold Collection: Everyone knows how the situation is at the global level these days. Due to the ongoing war between Iran and the US, the economy of all the countries is currently shaky. Nothing can be said about what is going to happen in the coming days. Meanwhile, people are also keeping an eye on the activities of any other country. Like recently gold is being reserved in China, but why so? Let us know.

China is reserving gold
In fact, China’s central bank People’s Bank of China (PBoC) is increasing its gold reserves for the 19th consecutive month. The bank bought about 10 tons of gold in May 2026, increasing China’s total official gold reserve to 2,331.5 tons. Besides, China’s foreign exchange reserves have also increased to 3.44 trillion dollars. Which is 31.7 billion dollars more than in April. This is the highest level of foreign exchange reserves since November 2015. China’s foreign exchange reserves have continuously remained above 3.3 trillion dollars for the last 10 months.

Also read: Aviation News: Break on air travel! Why are domestic flights suddenly being stopped, what is the reason for reduction in flights?

Why are China’s foreign exchange reserves increasing?
According to China’s foreign exchange regulator SAFE, the strong US dollar and rising prices of global assets have helped in this. At the same time, China’s strong exports are also a major reason for the increase in foreign exchange reserves. China’s total foreign trade increased by about 15% to $2.39 trillion from January to April 2026.

However, on the other hand, there are signs of cooling in the demand for gold in China. In the last one month, about $1.48 billion has been withdrawn from 14 gold ETFs. Earlier the strategy of buying gold when it fell was popular among investors, but now due to fluctuations in prices, differences of opinion on this thinking are increasing.

Sharp decline in shares
Not only this, the shares of many Chinese gold companies listed in Hong Kong have also seen a sharp decline. At the same time, according to Shanghai Gold Exchange data, gold extraction declined to 63.5 tonnes in May, which is the lowest level since February 2020 and almost half that of March.

Also read: Gold Price: Amid rising prices in India, know in which countries the cheapest gold is available, why there is this difference.

Is the economic crisis going to increase?
Looking at this step of China, it seems that the times to come may be a little more difficult. Inflation is increasing due to the ongoing tension in the Middle East, but with this move of China, it seems that some economic crisis will also be seen in the coming time, for which preparations are being made from China’s side. Although there is no concrete information regarding this, but considering the circumstances, the same speculations are being made.