Get rid of the USD, China Wholesale Gold Lots!

<p>&nbsp;China has stepped up its gold purchases in recent months, in a move seen as its bid to replace the dominance of the US dollar.</p><p><br /></p><p>In a tweet, Krishnan Gopaul, senior analyst for the World Gold Council, said that the People's Bank of China (PBOC) bought 21 tonnes of gold in June.</p><p><br /></p><p>It is understood that it is the eighth consecutive month of purchases by the central bank, amounting to 165 tons. The total gold reserves now amount to 2,113 tons.</p><p><br /></p><p>Over the past few months, analysts have noted that China's consistent demand for gold is part of a tactic to bring more international credibility to the yuan.</p><p><br /></p><p><br /></p><p>The gold rally comes amid the country's efforts to erode the dollar's dominance in global trade and rising geopolitical tensions.</p><p><br /></p><p>Beijing took a lesson from Russia which has been hit by a series of economic sanctions by the United States after invading Ukraine which cost it $300 billion.</p><p><br /></p><p>Besides China, other central banks around the world are also buying gold. In 2022, demand for the yellow metal has soared, and that trend has continued into this year with first-quarter purchases up 176% annually.</p><p><br /></p><p>According to a World Gold Council report in May, 62% of central banks predict gold will become a larger share of reserves in the next five years. Meanwhile, dollar reserves are expected to decrease to 40%-50%.</p>