What's Behind The Soaring Gold Price: China Quietly Buys 100 Tons Of Gold In Days

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by Tyler Durden
Friday, Jan 13, 2023 - 03:39 AM

Last week we reported that one month after its first official gold purchase since a three-year pause in 2019, when China restarted buying physical gold - some 32 metric tons in November - the PBOC bought another 30 tons in December, moves which lagged by just a few days a highly controversial analysis by repo guru Zoltan Pozsar who predicted - correctly - that China would soon telegraph its ambitions at launching a gold-backed currency (ostensibly in cooperation with Russia) in hopes of dethroning the US dollar as the world's reserve currency and replacing it with the petroyuan (observations which followed a few weeks later).

And while many - most notably Michael Pettis and Michael Every - have repeatedly mocked Pozsar's contrarian and controversial calls, which besides his vision of an upside-down Bretton Woods III world also most recently anticipated the start of a new QE as soon as this summer - one thing is certain: China has been buying much more gold and much more aggressively than it is letting on.