An announcement by China that it had 
secretly increased its gold holdings by more than three-quarters is an indication of the 
important role played by the yellow metal in central bank reserves, the World Gold Council (WGC) said.

Chinese buying could lead to a structural shift in gold holdings, the industry body suggested.

The gold price leapt 1% after the head of the State Administration of Foreign Exchange told Xinhua news agency that the country’s reserves had risen by 454 t, from 600 t in 2003, when China last adjusted its State gold reserves figure.

“The Chinese government’s decision further demonstrates the leadership it is increasingly taking and its public recognition of gold’s proven role as a store of value and portfolio diversifier,” WGC CEO Aram Shishmanian said in a statement.

“We are closely monitoring developments at other central banks to determine whether they will follow China’s bold and thought-leading move, particularly those in Asia.”

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